Shortly after President Donald Trump announced an ambitious $500 billion artificial intelligence (AI) infrastructure project, dubbed “Stargate,” Elon Musk took to social media to cast doubt on the plan’s viability.
“They don’t actually have the money,” Musk posted on his social platform, X. “SoftBank has well under $10B secured. I have that on good authority.”
The Stargate initiative, unveiled at the White House on Tuesday, aims to strengthen the United States’ AI infrastructure, with initial investments of $100 billion from companies like OpenAI, Oracle, and SoftBank. These investments are expected to scale to $500 billion over the coming years, with promises of job creation and innovation.
Musk’s comments highlight growing tension between himself and OpenAI CEO Sam Altman, who joined Trump, Oracle CTO Larry Ellison, and SoftBank CEO Masayoshi Son at the announcement. Musk has been in an ongoing legal battle with OpenAI, accusing the organization of straying from its nonprofit roots by prioritizing private profits.
Altman wasted no time responding directly to Musk on X, writing, “Wrong, as you surely know. Want to visit the first site already under way? This is great for the country. I realize what is great for the country isn’t always optimal for your companies, but in your new role, I hope you’ll mostly put (America) first.”
Musk, who is part of Trump’s close circle, has played an active role in the early days of the administration, even reportedly advising on Trump’s recent blanket pardon of January 6 rioters. However, his critique of Stargate has raised eyebrows, particularly given his connections to the White House.
White House Press Secretary Karoline Leavitt rebuffed Musk’s claims in an interview with Fox News, urging Americans to trust the administration and the corporate leaders behind Stargate.
“President Trump is very excited about this infrastructure announcement in the field of AI, which is obviously growing,” Leavitt said. “This is something the United States of America needs to capitalize on, especially as adversaries like China continue to advance in this field. These investments are coming to our great country, and American jobs are coming along with them.”
A source close to Stargate also dismissed Musk’s comments, pointing out that SoftBank has $24.3 billion in cash reserves, with access to additional debt and capital. Oracle reportedly holds $11 billion in cash, while OpenAI recently raised over $10 billion in venture capital. Microsoft CEO Satya Nadella, a key partner in the project, added confidence, stating on CNBC, “All I know is I’m good for my $80 billion.”
A High-Stakes Project with Uncertain BackingDespite the bold vision for Stargate, details about how the funding will be raised remain unclear. Critics like Musk argue that the project’s financial foundations are shaky, raising concerns about whether such an ambitious endeavor can be successfully executed.
Musk’s skepticism reflects broader debates about the feasibility of large-scale AI investments and the competition between tech giants vying for dominance in the field. For Trump’s administration, Stargate represents a major initiative to cement the U.S. as a global leader in AI, countering advancements in countries like China.
As the Stargate project takes shape, the clash between Musk and Altman underscores the challenges of balancing ambition, funding, and collaboration in a rapidly evolving technological landscape.