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.

“We can do both things. We can make sure that we are protecting our people, protecting the environment, and that we’re bringing historic investment to our neighborhoods and communities,” he said.

“Well, in its first year, there is going to be $25 million between the city and county that’s invested in the community,” 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.

“We’ll be able to do home repairs, repair roofs, repair HVAC systems, remove lead and contaminants that are actually making people sick,” said Mayor Young.

The clarification comes two days after state lawmakers weighed in on xAI.

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.

“Lawmakers Meet with Mayor Young about xAI,” said State Rep. Justin Pearson (D-Memphis). “I stand firm that that nothing matters if you can not breathe clean air, drink clean water, and plant in clean soil.”

“The reason they filed for that permit is because they want those turbines to be back-up power because they are going to be tapping into the MLGW grid,” said Young.

Young said that xAI’s Grey Water Facility will handle reducing the strain on the aquifer by 9%.

“It’s also going to allow TVA, who does have a well that is drilled into the aquifer when they pull 6 and a half million gallons of water a day, it’s going to allow them to get off the aquifer,” said Mayor Young.

He said the rumors of him signing a non-disclosure agreement and a big personal cash deal with xAI are not true.

Young said what is true is that xAI has the potential to grow the digital delta infusing much-needed high-tech jobs and tax dollars in the Mid-South.

“So while the number of jobs at xAI is roughly around 200 now, our goal is to figure out how we amplify.”

The mayor told WREG that talks have started on ways to incorporate AI-based training in schools.

Top schools mentioned to be included in the potential program are Whitehaven, John P. Freeman, Fairley, Mitchell, and Westwood.