- Published on
Elon Musk quietly buys a $1 billion gas turbine company to power Grok
- Authors
- Name
- DeepHorus
Elon Musk has quietly acquired APR Energy, a Jacksonville-based company operating over 1 GW of mobile gas and diesel turbines, to power the data centers running xAI's Grok chatbot. The acquisition, valued at over $1 billion, surfaced through a Federal Trade Commission early termination notice dated May 14, 2026, without any formal announcement. This purchase provides Musk a captive supply of fossil-fuel generation for his artificial intelligence ventures, directly contradicting his longstanding advocacy for a solar-powered economy.
APR Energy specializes in trailer-mounted gas turbines and reciprocating engines that can reach full power in under 10 minutes and be installed in days, bypassing the lengthy permitting and construction required for fixed power plants. The company's technology runs on natural gas and diesel, representing traditional fossil-fuel combustion. Musk's xAI had already been using similar unpermitted gas turbines in Memphis to operate its Colossus and Colossus 2 supercomputers for Grok, sparking legal battles.
The acquisition's implied value exceeds $1 billion, inferred from a minority stakeholder receiving $50.4 million for a 5% stake. Fortress Investment Group had previously acquired APR Energy's assets in late 2024 and rebranded it as New APR Energy LLC before selling to Musk. The deal cleared antitrust review without further scrutiny, allowing Musk to secure a ready-made power solution for his growing AI infrastructure.
xAI's use of gas turbines has drawn significant controversy. The Department of Justice intervened to keep xAI's unpermitted turbines running in South Memphis, citing national security concerns, while the NAACP, Southern Environmental Law Center, and Earthjustice sued under the Clean Air Act. According to environmental groups, the turbines could emit over 2,000 tons of smog-forming nitrogen oxides annually. In the predominantly Black Boxtown neighborhood near the facility, cancer risk is already four times the national average.
The electricity from these turbines primarily powers Grok, a chatbot where over half of traffic is now driven by adult content, including pornographic image and video generation. Reports from former employees and investigations have documented Grok being used to digitally undress individuals, with some outputs allegedly depicting minors. Musk has reportedly resisted adding guardrails, further fueling criticism.
Environmental justice advocates have condemned the purchase, highlighting the irony of the self-proclaimed champion of solar energy investing in fossil fuels. Musk had previously chaired SolarCity and promoted solar-plus-battery storage as a path off fossil fuels. As recently as January 2026, he announced plans for massive US solar manufacturing capacity at Davos, a vision now overshadowed by his reliance on gas turbines.
Looking ahead, Musk's new asset is likely to expand xAI's turbine-heavy energy strategy for Colossus 2 and beyond, despite ongoing litigation and community opposition. The acquisition enables Musk to bypass grid interconnection delays, but it deepens his entanglement in environmental conflicts. The move raises questions about the sustainability and ethics of powering AI with fossil fuels, especially in overburdened communities.
