MEMPHIS, Tenn. — Memphis Mayor Paul Young announced an ordinance he is taking to the city council that would turn tax revenue from xAi into investments for Memphians.

Mayor Paul Young was on News 3 at 3, defending Elon Musk’s artificial intelligence facility in an interview with Alex Coleman on Thursday.

“I think that there’s been a lot claims and accusations made without being rooted in fact,” Young said. “I think it’s really important to balance the conversation.”

Environmental groups have claimed that xAI plans to install 45 to 90 gas turbines to power their supercomputer, and is operating turbines illegally.

Young said he doesn’t know where those numbers came from, but the company had 35 methane-gas turbines. It has dropped down to 21 turbines and would only use 15 for backup power.

The company legally has 365 days to use them without a permit.

Young said he understood that citizens feel like they weren’t told much about the project before it launched, but he said that is because, unlike many other developments, xAI didn’t ask for public incentives from the start.

“In this instance, we flipped it on its head, we said 75% can go to the broader community, but 25% of this investment should stay right here in the neighborhood,” said Mayor Young.

He told WREG the city is set to receive about $12 million in tax revenue, and 25% of that will be going to communities around the supercomputer facility.

Earlier this week, activists led by state Rep. Justin J. Pearson demanded that leaders fight to stop xAI from moving forward in Memphis by denying permit applications for the turbines. Young then met with those leaders to discuss their concerns.