Musk, Altman clash over funding of Trump-endorsed Stargate AI project
What's the story
Tech tycoon Elon Musk and Sam Altman, CEO of OpenAI, are locked in a public spat over the newly announced Stargate artificial intelligence (AI) project. The initiative, unveiled by President Donald Trump, is a collaborative effort between OpenAI, Oracle, and SoftBank. With an estimated investment value of up to $500 billion, it aims to build data centers and power generation facilities for AI development.
Funding doubts
Musk challenges Stargate's financial backing
Musk, who is advising Trump on a government cost-cutting initiative, has openly questioned the funding of the Stargate project. On X, he said, "They don't actually have the money," adding, "SoftBank has well under $10B secured. I have that on good authority." His remarks were countered by Altman, who claimed Musk was "wrong, as you surely know" and invited him to see the project's first site under construction in Texas.
Project defense
Altman defends Stargate, invites Musk to Texas site
In light of Musk's skepticism, Altman defended the Stargate project and invited Musk to join him. He said, "(T)his is great for the country. I realize what is great for the country isn't always what's optimal for your companies, but in your new role I hope you'll mostly put (America) first." This exchange sheds light on a long-standing feud between Musk and Altman from their OpenAI days.
Ongoing lawsuit
Musk's legal battle against OpenAI's profit transition
Musk, a former investor and board member of OpenAI, sued the company last year. He accused it of straying from its non-profit mission and is now trying to stop OpenAI from becoming a for-profit entity. A hearing on the same is due in California in early February. Meanwhile, Musk also founded his own AI company, xAI, last year and alleges OpenAI and its partner Microsoft have an unfair competitive advantage.
Project evolution
Stargate's connection to previous AI data center project
The Information first reported on the OpenAI data center project in March 2024. In July of the same year, Crusoe Energy Systems and Lancium announced a "multibillion-dollar" AI data center project in Texas without disclosing investors. It remains unclear how this project became part of the Stargate initiative announced by Trump. Oracle co-founder Larry Ellison revealed the Texas project is just one of potentially 20 data centers planned under this initiative.
Tech giant's involvement
Microsoft's role in Stargate and response to Musk
Despite being a major OpenAI partner, Microsoft wasn't included in Trump's Stargate project announcement. However, the tech giant has confirmed its Stargate investment and said its OpenAI partnership will "evolve." Responding to Musk's remarks, Microsoft CEO Satya Nadella emphasized his company's own $80 billion AI infrastructure plan, saying, "Look, all I know is, I'm good for my $80 billion."