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Elon Musk Angry at Trump For Backing Sam Altman’s $500B ‘Stargate’ AI Project

Historic AI infrastructure project, spearheaded by Sam Altman, Larry Ellison, and Masayoshi Son, ignites Musk’s skepticism and rivalry.

January 23, 2025: Washington DC:
A historic milestone in Artificial Intelligence was announced at the White House as former President Donald Trump launched the $500 billion ‘Stargate’ AI project. The initiative, which aims to build the world’s largest AI infrastructure, is being spearheaded by OpenAI founder Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son.

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However, Tesla and SpaceX CEO Elon Musk, notably absent from the project, lashed out on social media, raising doubts about the venture’s funding and feasibility.

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The ‘Stargate’ AI Project

President Trump announced that the Stargate project, with an initial investment of $100 billion, will create over 100,000 jobs and revolutionize AI infrastructure in the United States. “This will be the largest AI infrastructure project in history,” Trump declared, adding that the project will “power the next generation of AI.”

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Larry Ellison confirmed that the first data center, spanning one million square feet, is already under construction in Texas. The project’s funding partners include OpenAI, Oracle, and SoftBank, with Nvidia rumored to join the initiative.

Musk’s Reaction and Criticism

Elon Musk, a former co-founder of OpenAI and now a rival through his AI firm xAI, expressed skepticism on his platform X (formerly Twitter). Musk alleged that the promised $500 billion investment was unrealistic, claiming that SoftBank has “well under $10 billion secured” and calling the project’s financial projections into question.

Musk also alluded to a fallout between OpenAI and its long-time partner Microsoft, engaging with users who mocked the project. “OpenAI and Microsoft are done,” Musk commented, fueling speculation about strained relationships in the tech world.

Musk vs. Altman: A Rivalry in AI

Musk and Altman’s relationship has deteriorated since Musk’s departure from OpenAI in 2018. Musk has accused Altman and his team of turning OpenAI from a non-profit into a for-profit enterprise, claiming this shift represents a betrayal of the company’s original mission.

In ongoing lawsuits, Musk has described OpenAI’s actions as “deceit of Shakespearean proportions,” further straining ties with Altman, now leading the Stargate project.

Altman’s Vision for Stargate

Sam Altman emphasized that Stargate will strengthen America’s global leadership in AI. “This will be the most important project of this era,” Altman said, thanking Trump for his support. He added that Stargate would “build the physical and virtual infrastructure to power the next wave of AI advancements.”

Financial and Strategic Challenges

According to the Wall Street Journal, Oracle has $11 billion in cash reserves, while SoftBank holds around $30 billion. OpenAI, which has been operating on borrowed funds, remains a loss-making entity. Despite these challenges, the partners have committed $100 billion to kickstart Stargate, with plans for a $500 billion investment over four years.

Conclusion

As the Stargate project gears up to transform the AI landscape, it has also reignited tensions among tech giants. While Musk continues to criticize the initiative, Altman and his team remain optimistic, signaling a new chapter in the race for AI dominance.