Elon Musk has publicly expressed skepticism about the ambitious $500 billion artificial intelligence initiative, known as Stargate, announced by former President Donald Trump.
The project, which involves partnerships with OpenAI, Oracle, and SoftBank, aims to create extensive AI infrastructure in the United States, starting with an immediate commitment of $100 billion for data centers and power generation facilities.
Shortly after the announcement on January 22, 2025, Musk took to social media platform X to voice his doubts regarding the project’s financial backing.
He stated that “they don’t actually possess the funds,” claiming that SoftBank had secured “well under $10 billion” for the venture, contradicting Trump’s assertion of a much larger financial commitment.
Musk’s comments highlight a significant rift between him and the Trump administration, particularly as he holds a close advisory role within it.
During the unveiling of Stargate, Trump characterized it as “the largest AI infrastructure project in history,” emphasizing its potential to generate jobs and position the U.S. as a leader in AI technology.
He promised to eliminate regulatory barriers to facilitate this development However, Musk’s skepticism raises questions about whether the projected funding is realistic or merely aspirational.
In response to Musk’s claims, OpenAI CEO Sam Altman defended the project’s financial viability.
He labeled Musk’s assertions as “incorrect” and invited him to visit one of the sites already under construction in Texas. Altman underscored that while what benefits the nation may not always align with Musk’s business interests, he hoped Musk would prioritize national interests in his new role.
This public disagreement is not just a matter of differing opinions on funding; it also reflects a deeper rivalry between Musk and Altman that dates back to their shared history at OpenAI.
Musk has previously criticized OpenAI for its shift towards profit-driven motives and has even filed lawsuits against the organization over these concerns. As tensions escalate, this latest clash could further complicate their already fraught relationship
The Stargate initiative has sparked varied responses from other tech leaders. Microsoft CEO Satya Nadella refrained from directly addressing Musk’s claims but affirmed Microsoft’s commitment to investing $80 billion in AI capabilities this year through its partnership with OpenAI
As the tech industry navigates its relationship with Trump’s administration, Stargate represents a critical intersection of politics and technology that will be closely watched in the coming months.
In summary, while Trump heralds Stargate as a monumental step for AI in America, Musk’s doubts about its funding could pose significant challenges ahead for this ambitious project.
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