A construction firm has filed a $136.9 million lien against the Memphis properties housing Elon Musk's SpaceXAI Colossus supercomputer campus, alleging unpaid work spanning more than two years. The filings, recorded in Shelby County, Tennessee, represent one of the largest public disputes involving the artificial intelligence division that merged xAI into SpaceX in May 2026.

What Is SpaceXAI and Why Does This Matter?

SpaceXAI is the artificial intelligence division created when xAI, the company behind the Grok chatbot, merged into SpaceX. The entity operates the Colossus supercomputer campus in Memphis, a sprawling data center complex that represents a major infrastructure investment for Musk's AI ambitions. Understanding the scale and status of this facility matters because it underpins the computational power needed to train and run large language models like Grok.

The Colossus campus consists of multiple properties across Memphis. The dispute involves two separate locations with two distinct contractors and timelines, suggesting the complexity of managing a large-scale data center construction project.

How Are the Liens Structured and What Do They Cover?

• First Property (Tulane Road): Darana Hybrid, Inc. filed a lien for $118.2 million on July 31, 2026, claiming work performed from February 27, 2025, through June 23, 2026, at 5420 Tulane Road in Memphis. The property owner listed is MZX Tech, LLC.
• Second Property (Paul R. Lowry Road): A second lien for $18.6 million was filed on July 30, 2026, covering work at 3231 Paul R. Lowry Road, the former Electrolux plant housing the original Colossus 1 facility. This dispute dates back to March 10, 2024, making it the older of the two claims.
• Combined Total: The recorded liens total $136.9 million, though the construction company claims it is owed significantly more overall, including amounts not yet formalized in public filings.

Both liens name MZX Tech, LLC and CTC Property, LLC as the contracting property owners. These entities appear to hold the Memphis campus on SpaceXAI's behalf, though they are not SpaceXAI directly. One notice recipient on the Tulane Road lien is identified as Jared Birchall, Secretary of MZX Tech, LLC. Birchall is the head of Elon Musk's family office, providing a documented connection between the named entities and Musk's broader operations.

What Is the Full Scope of the Dispute?

The $136.9 million in recorded liens represents only part of what Darana Hybrid claims is owed. According to reporting by the Daily Memphian, the construction company has stated it is owed approximately $570 million overall, with the total contract valued at around $1.5 billion. The gap between the lien amount and the claimed total is not necessarily a contradiction; mechanics' liens typically document specific, provable unpaid balances rather than a company's entire claimed loss.

The older dispute at the Paul R. Lowry Road property is particularly notable because work allegedly began in March 2024, yet the lien was not filed until July 2026, a delay of more than two years. This extended timeline raises questions about the negotiation and dispute resolution process between the parties.

What Happens Next in This Dispute?

Neither Darana Hybrid nor SpaceXAI has commented publicly on the specific contents of these filings. None of the underlying allegations have been tested in court. A mechanics' lien is a legal tool that allows contractors and suppliers to claim a security interest in property when they believe they have not been paid for work performed. The filing does not automatically resolve the dispute; it establishes a claim that must be addressed through negotiation, mediation, or litigation.

The filings were sworn by Brandy Petrak, Senior Accountant at Darana Hybrid, and notarized in Butler County, Ohio, consistent with the company's Hamilton, Ohio headquarters. The liens describe Darana Hybrid as a Tennessee corporation, establishing its legal standing to file claims in Shelby County.

This dispute underscores the operational and financial complexities involved in building large-scale AI infrastructure. Data centers require massive construction efforts, specialized equipment, and coordination across multiple contractors and suppliers. Payment disputes in such projects can have ripple effects on timelines, staffing, and project momentum. For observers of Musk's AI strategy, the Colossus facility represents a critical piece of infrastructure intended to support xAI's computational needs, making the resolution of this dispute relevant to the broader trajectory of SpaceXAI's operations.