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OpenAI and Microsoft have responded to Elon Musk’s criticism of Stargate, the new $500bn artificial intelligence project hailed by Donald Trump as “a powerful declaration of confidence in America’s capabilities under the new president”.
In a rare break with Trump, Musk on Tuesday evening he poured cold water on this project, writing: “They really don’t have money.” He also said he has “good faith” that SoftBank has secured less than $10bn.
OpenAI CEO Sam Altman responded on Wednesday that Musk’s claim was “wrong, as you know”.
He wrote: “I realize that what is good for the country is not always what is good for your companies, but in your new role I hope you will put (the US) first.
Although Stargate’s founding investors – SoftBank, OpenAI, Oracle and MGX, Abu Dhabi’s state-owned AI fund – will put their own money into the company, the bulk of the first $100bn is expected to come from investors the new ones have not been identified, according to one person involved in the project.
it is wrong, as you well know.
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this is good for the country. I realize that what is in the best interest of the country is not always what is best for your companies, but in your new role I hope you will put 🇺🇸 first.
— Sam Altman (@sama) January 22, 2025
One person involved said the money would be a mix of equity from the founding partners and co-investors, as well as debt, but added: “We intend to invest $100bn immediately.”
Musk, who chairs the newly created Department of Government Operations, has been in a long-running feud with OpenAI, Altman and major backer Microsoft. Musk was a co-founder of OpenAI, but left the board in 2018 after falling out with Altman.
The CEO of Tesla has launched a series of lawsuits against the two companies and Altman, saying that they have compromised their mission to create more useful AI models by putting profits first.
Their spat now threatens to put some tension in Musk’s relationship with the new president, who presented the project as the first victory in his plans to drive investment in the US through low taxes and reduced regulation.
Trump unveiled Stargate on Tuesday at the White House, surrounded by Altman, SoftBank chairman Masayoshi Son and Oracle co-founder Larry Ellison.
The president has suggested that Stargate will create 100,000 jobs and represents a victory against China, helping to secure the “technological future” of the US. He also said he would use “emergency announcements” to speed up its access to the large amounts of electricity it will need.
In an interview with CNBC on Wednesday, the CEO of Microsoft, Satya Nadella, said that his company has $ 80bn in planned spending this year, separate from Stargate. “All I know is that I’m worth my $80bn,” he said.
Shares in Japan’s SoftBank rose more than 10 percent on Wednesday after Trump unveiled the joint venture, which plans to spend $100bn on technology infrastructure, rising to $500bn over the next four years.
Other public companies involved in Stargate have also seen their share prices rise. Oracle added 7 percent, while Arm, Nvidia and Microsoft – technology partners in the project – gained 17 percent, 4 percent and 3 percent respectively. OpenAI, which will serve the purpose, is not publicly traded.
SoftBank and OpenAI declined to comment. MGX and Oracle did not immediately respond to requests for comment.
