Elon Musk’s artificial intelligence company, xAI, has subleased about 112,000 square feet at the Seaholm Power Plant in downtown Austin, according to multiple first-quarter market reports from brokerages. The news emerged on Apr. 16 and indicates that nearly all of the building’s office space is now occupied by xAI.
The move is significant as it marks one of the first real estate deals connected to Terafab, Musk’s $20 billion-plus initiative aimed at scaling artificial intelligence production. This project could eventually support tens of millions of AI chips for uses ranging from autonomous vehicles to robotics and aerospace systems.
Reports from Cushman & Wakefield and CBRE suggest that a joint venture involving xAI, Tesla, SpaceX, and Intel may be occupying the site. CoStar data lists xAI as the subtenant as of March. The previous tenant was Athenahealth, which had leased space there since 2014.
Construction crews have been seen working inside the building this week with restricted access and signage limiting photography. Neither xAI nor landlord Endeavor Real Estate Group responded to requests for comment regarding details about the tenancy.
This commitment stands out in Austin’s office market where large blocks of space have been slow to lease since companies reduced occupancy beginning in 2020. However, questions remain about how permanent this move will be; Musk has said Terafab’s long-term home will need thousands of acres and significant power capacity with potential sites still under consideration across the region.
