Elon Musk's company also received support from the U.S. Department of Justice as SpaceX shares soared in the first three trading days, CNBC reported. The U.S. Department of Justice has asked a federal court in Mississippi to dismiss the NAACP’s pollution lawsuit against xAI.


US military uses xAI's Grok

The NAACP filed the lawsuit in April this year, accusing SpaceX's AI company xAI of violating the federal Clean Air Act by using dozens of turbines burning methane gas to power its AI data center without obtaining appropriate permits or taking pollution control measures. These turbines emit smog-forming pollutants and particulate matter that can increase health risks and produce unpleasant odors. The NAACP recently petitioned the court for an injunction barring xAI from using the turbines until a judge rules on the case.

For more than a year, SpaceX's Colossus 1 and Colossus 2 data centers in and around Memphis, Tennessee, as well as the power plants supporting these facilities, have been facing protests over issues including air pollution, power consumption, water consumption, and noise around the facilities.

According to a motion filed by the U.S. Department of Justice’s Environment and Natural Resources Division on June 15, Justice Department lawyers accused the NAACP of threatening “the national, economic, and energy security of the United States” by trying to cut off the power supply that supports AI innovations that also support the military operations of the U.S. Department of War.

The U.S. Department of Justice document quotes War Department AI chief Cameron Stanley as saying that Grok's continued availability is "a matter of national security at the highest level." The Justice Department said that during the Iran War, the military version of xAI's Grok "enabled the U.S. military to deliver more than 2,000 munitions to 2,000 different targets in 96 hours, a performance that demonstrated the significant combat efficiency improvement brought by the Grok Gov model."

Earth Justice, one of the law firms representing the NAACP, said in an emailed statement to CNBC that "the Department of Justice wants to give itself veto power over citizen lawsuits, a key legal tool that has protected communities from illegal pollution for more than 50 years."

As of press time, SpaceX has not commented on this.