Musk Clashes with Altman Over Trump-Backed Stargate AI Project
A public feud has broken out between Tesla CEO Elon Musk and OpenAI Chief Executive Sam Altman over Stargate, a newly announced artificial intelligence (AI) infrastructure initiative supported by former U.S. President Donald Trump. Unveiled on Tuesday, Stargate is a joint venture between OpenAI, Oracle, and SoftBank with a lofty investment target of up to $500 billion. The project will purportedly create data centers and power generation facilities to accelerate AI technology.
Trump described the endeavor as a significant step for America, highlighting its reported initial private $100 billion funding as 'a resounding declaration of confidence in America's potential'. However, government cost-cutting initiative advisor for Trump, that is, billionaire entrepreneur Elon Musk, openly showed skepticism over project's financial viability.
They don't actually have the money, 'Musk claimed on X, the social media platform he owns'. SoftBank has well under USD 10B secured. I have that on good authority.
Altman fired back by accusing Musk of spreading misinformation. "You're wrong, as you surely know," Altman responded on X, inviting Musk to visit Stargate's first construction site 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 added.
This feud has roots going back to the time the two founded OpenAI together. The current dispute involves Musk's alleged failure to receive promised shares from OpenAI and claims by Altman that Musk never owned any OpenAI shares, since the company never issued him any. Their acrimonious battle, however, reflects a deeper animosity between Musk and Altman.
Meanwhile, the origins and financiers of Stargate are still shrouded in mystery. Oracle Co-founder Larry Ellison called the Texas project the first of potentially 20 data centers. But Microsoft, one of OpenAI's most important partners, was notably absent from Trump's announcement. Microsoft CEO Satya Nadella later confirmed that Microsoft had indeed invested in Stargate but insisted on its separate $80 billion AI infrastructure initiative, saying, "Look, all I know is, I'm good for my USD 80 billion".
Musk, who launched his own AI venture, xAI, last year, contends that OpenAI and its partner Microsoft enjoy an unfair competitive edge in the AI race. As Stargate progresses, the controversy underscores the high stakes and intense rivalries shaping the future of AI infrastructure.
