Shortly after U.S President Donald Trump announced a significant AI infrastructure investment from the White House, Elon Musk criticized the plan.
“They don’t actually have the money,” Musk said. “SoftBank has well under $10B secured. I have that on good authority.”
Three tech giants have joined forces in their quest for AI supremacy to launch the world’s largest AI initiative, named “Stargate.” The ambitious project will be led by a powerhouse team, including Sam Altman, founder of OpenAI, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son. Nvidia is reportedly in discussions to partner on the venture, though no official confirmation has been made.
The companies involved have committed an initial $100 billion to kickstart the project, with plans to invest up to $500 billion into Stargate over the coming years.
The remarks represent a significant critique of a major White House initiative by someone within Trump’s closest circle. Musk’s deep involvement in the administration’s early days is evident; he revealed he was in the Oval Office on Tuesday when Trump signed a pardon for Ross William Ulbricht, founder of the SilkRoad dark web marketplace. Additionally, Musk assigned a senior staffer from his SpaceX and X companies to assist in securing the release of convicted January 6 rioters following Trump’s blanket pardon.
It’s perhaps unsurprising that Musk is targeting an OpenAI-led initiative. He is currently embroiled in a lawsuit against OpenAI and its CEO, Sam Altman, who was present at the White House for the Stargate announcement. Musk, who has expressed distrust of Altman, alleges in the suit that OpenAI has strayed from its nonprofit roots by prioritizing advanced AI technology for private clients.
As for the Stargate project, the companies involved have yet to disclose specific funding mechanisms. However, they might not require immediate liquidity, as they could raise debt or bring in additional equity investors to support the initiative.
