Musk And Altman Face Off Over Trump-Backed ‘Stargate’ AI Project

The long-standing feud between Elon Musk and Sam Altman has escalated, this time over the Stargate AI infrastructure project, a joint venture announced by President Donald Trump. Stargate, backed by OpenAI, Oracle, and SoftBank, aims to invest up to $500 billion in developing advanced AI infrastructure, starting with data centers powered by renewable energy. Trump described the initiative as a significant step toward realizing America’s technological potential.

Trump’s vision for Stargate

President Donald Trump introduced Stargate as a transformative venture, starting with an initial $100 billion investment that could quintuple. He called it a testament to America’s potential under his leadership. The first site, located in Texas, is already under construction and aims to integrate cutting-edge AI technology with sustainable energy solutions.

Musk’s skepticism and Altman’s rebuttal

Elon Musk, a key Trump adviser, immediately challenged the project’s finances on his social platform X stating that “They don’t actually have the money”. He also asserted that SoftBank has “well under $10B secured”. Sam Altman, CEO of OpenAI, shot back, labeling Musk’s statements as inaccurate and inviting him to tour the first Stargate site under construction in Texas.

They don’t actually have the money

— Elon Musk (@elonmusk) January 22, 2025

 Altman emphasized it was “great for the country,” subtly criticizing Musk for what he views as prioritizing personal ventures over national benefit. Their public exchange reflects deeper tensions rooted in Musk’s earlier disputes with OpenAI, particularly its transition from a nonprofit to a for-profit entity.

The future of AI infrastructure

Despite Microsoft’s prominent role in funding OpenAI’s AI advancements, it remained absent from Trump’s announcement. As the Stargate project pushes forward, its execution, and the Musk-Altman standoff, could profoundly shape how transformative AI technologies are developed and deployed in the United States and beyond.

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