In a heated twist to a high-profile announcement, tech mogul Elon Musk took a swing at former President Donald Trump’s ambitious $500 billion AI project, suggesting the numbers just don’t add up.
“They don’t actually have the money,” Musk wrote on his platform, X. “SoftBank has secured less than $10 billion. I have that on good authority.”
Trump unveiled the initiative, dubbed Stargate, during a major White House event, flanked by executives from SoftBank, OpenAI, and Oracle. The companies pledged an initial $100 billion investment, with plans to expand funding to $500 billion in the coming years.
Musk’s comments, however, cast doubt on the feasibility of the project, raising eyebrows given his close relationship with Trump. Musk was reportedly in the Oval Office just days ago, lobbying for the pardon of Ross Ulbricht, founder of Silk Road, and supporting blanket pardons for January 6th rioters.
Tensions between Musk and OpenAI, one of Stargate’s key players, likely fueled his critique. Musk, a co-founder of OpenAI, has been openly critical of its leadership under Sam Altman, accusing the company of prioritizing profits over its original nonprofit mission. The two are also embroiled in an ongoing legal dispute.
OpenAI CEO Sam Altman didn’t hold back, directly responding to Musk’s claims on X:
“Wrong, as you surely know. Want to come visit the first site already underway? This is great for the country. I hope you’ll put America first in your new role.”
The White House defended the project, with Press Secretary Karoline Leavitt calling it a “transformative opportunity” for the U.S. to strengthen its position in the global AI race.
“President Trump is committed to bringing these investments and jobs to America,” she said in a Fox News interview. “The American people should take him and the CEOs at their word.”
Industry insiders, however, maintain that the funding is secure. A source familiar with Stargate highlighted SoftBank’s $24.3 billion in cash reserves, Oracle’s $11 billion, and OpenAI’s recent $10 billion capital infusion. Microsoft CEO Satya Nadella even quipped, “All I know is, I’m good for my $80 billion.”
As the AI arms race heats up, Musk’s criticism underscores the high stakes—and high tensions—surrounding America’s next frontier in innovation.
Link: https://edition.cnn.com/2025/01/22/tech/elon-musk-trump-stargate-openai/index.html
