Tesla boss Elon Musk and OpenAI CEO Sam Altman have divergent opinions on the $500 billion Stargate artificial intelligence (AI) infrastructure project proposed by the US President Donald Trump.
US President Donald Trump has proposed a joint venture named Stargate Project to build AI infrastructure with an investment of nearly $500 billion through a partnership with Sam Altman-led ChatGPT maker, OpenAI, Oracle and SoftBank, a move that DOGE head Elon Musk opposes.
The new venture has started the construction of data centres and the electricity generation needed to develop AI technology.
$500 billion Stargate Project
Donald Trump referred to the Stargate Project as “a resounding declaration of confidence in America’s potential” under his new administration. The initial private investment of the project is $100 billion, with the projected cost pegged at $500 billion.
However, Elon Musk, leading Trump's new Department of Government Efficiency or DOGE, aimed at a cost-cutting initiative, has questioned the need for such high-value investment.
Taking to his social media platform X, Musk wrote, “They don’t actually have the money."
“SoftBank has well under $10B secured. I have that on good authority," he added.
OpenAI CEO Sam Altman responded to Musk's claim and said, “wrong, as you surely know." He also asked Musk to visit the first site which is under construction in Texas.
"This 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,” Altman wrote on X.
However, this is not the first time that both Musk and Altman have clashed over an issue. The feud between the two began as a boardroom rivalry at OpenAI, founded by Musk, Altman and others.
Last year, Musk, an investor and board member at OpenAI, sued the company, alleging a violation of its founding agreement.
In 2023, Musk founded his own AI company, xAI, which will have a data centre in Memphis, Tennesee. According to Musk, xAI faces severe competition from OpenAI and Microsoft, which has supplied resources to build ChatGPT, AP reported.
On January 21, 2025, OpenAI announced the new venture.
“The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” OpenAI said on its website.
“The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman,” it added.
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