On January 22, tech titan Elon Musk expressed skepticism about a $500 billion AI project announced by US President Donald Trump, claiming the promised investment funds were not actually available. This marked a rare instance of disagreement between Musk and Trump, with Musk having played a key role in the newly installed administration after contributing $270 million to the election campaign.
In his first full day in the White House on January 21, Trump announced a major investment to build AI infrastructure, led by Japanese giant SoftBank and ChatGPT-maker OpenAI. The venture, named Stargate, was touted to invest at least $500 billion in AI infrastructure in the United States.
However, Musk took to his social media platform X to challenge the financial backing of the project, stating that the main investors “don’t actually have the money.” He added that SoftBank had secured well under $10 billion, casting doubt on the feasibility of the initiative.
Musk’s comments appeared to target OpenAI, the leading AI startup he helped found before leaving in 2018. The Tesla CEO and OpenAI chief executive Sam Altman, who was present at the White House announcement, have been embroiled in a serious feud, with Musk filing multiple lawsuits against the company behind ChatGPT.
Altman responded to Musk’s claims on X, asserting that the project was already underway and emphasizing its importance for the country. He urged Musk to prioritize national interests over personal business concerns.
The Stargate project, involving major tech companies like Oracle, Microsoft, and Nvidia, aims to invest an initial $100 billion, with up to $500 billion over the next four years. The project is initially building a data center operation in Texas, with construction already in progress.
Despite the ambitious vision, financial concerns persist, with analysts questioning SoftBank’s ability to support such a large-scale investment. The project also includes funding from Abu Dhabi’s AI-focused state fund MGX and Oracle, while SoftBank-owned Arm, Microsoft, and Nvidia will serve as technology partners.