Businessman and political activist Elon Musk has raised doubts about a $500 billion artificial intelligence (AI) investment project unveiled by US President Donald Trump, leading to a sharp exchange with OpenAI CEO Sam Altman.
The project, dubbed Stargate, was announced as a transformative initiative to bolster AI infrastructure in the United States but has drawn scepticism from Musk, who claims the promised funding is not secured.
On Tuesday, President Trump, in his first full day in the White House, unveiled Stargate, a partnership involving Japanese conglomerate SoftBank and OpenAI.
Trump described the project as a "resounding declaration of confidence in America's potential," stating that it would involve an initial private investment of $100 billion, eventually scaling up to $500 billion.
Stargate's focus will be on building AI data centres and renewable energy systems to power the rapidly advancing AI industry.
However, Elon Musk, a close advisor to Trump and a significant campaign donor, expressed reservations about the project’s feasibility.
Posting on his social media platform X, Musk remarked, "They don't actually have the money. SoftBank has well under $10B secured. I have that on good authority."
Sam Altman swiftly responded, accusing Musk of being "wrong, as you surely know," and invited him to visit the first site under construction in Texas.
Altman defended the initiative, stating, "This is great for the country. I realise 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," with the US flag emoji symbolising the nation.
Background of the rift
The Musk-Altman clash over Stargate is the latest chapter in a long-standing feud between the two tech leaders. Both were co-founders of OpenAI, but disagreements over the organisation's trajectory led to a bitter fallout.
Musk left the board in 2018 and later sued OpenAI, alleging it had deviated from its original mission as a non-profit dedicated to the public good.
Last year, Musk escalated the dispute with additional legal claims, seeking to block OpenAI’s transition to a more profit-oriented business model. The matter is scheduled for a hearing in February in a federal court in California.
Meanwhile, Musk has launched his own AI enterprise, xAI, which is constructing a data centre in Memphis, Tennessee, to rival OpenAI’s initiatives.
Stargate's origin and progress
Tech outlet The Information first reported on Stargate in March 2024, noting its development predates Trump’s presidency. SoftBank and energy companies such as Crusoe Energy Systems and Lancium have been pivotal to the project.
A large AI data centre in Abilene, Texas, is already underway, with promises of renewable energy integration.
Lancium CEO Michael McNamara has emphasised the project's commitment to green energy, stating it aims to "deliver the maximum amount of green energy at the lowest possible cost."
Despite Musk’s criticism, the Trump administration and OpenAI remain bullish on Stargate’s potential to establish the US as a global leader in AI.
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