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OpenAI and Microsoft have hit back at Elon Musk’s criticism of Stargate, a new $500 billion artificial intelligence infrastructure project that Donald Trump hailed as “a resounding statement of confidence in America’s potential under a new president.”
In a rare break with Trump, Musk poured cold water on the project on Tuesday night, writing: “They don’t really have the money.” He added that he had “good authority” that SoftBank had secured less than $10 billion for the project.
OpenAI CEO Sam Altman responded Wednesday that Musk’s claim was “wrong, as I’m sure you know.”
“I understand that what is good for the state is not always optimal for your companies, but I hope that in your new role you will mainly put [the US] first,” he wrote.
Although Stargate’s founders – SoftBank, OpenAI, Oracle and MGX, Abu Dhabi’s sovereign wealth fund for artificial intelligence – will put some of their own capital into the company’s work, much of the initial $100 billion is expected to come from new investors who have not yet identified, according to one person involved in the project.
wrong, as you surely know.
want to visit the first place that is already in progress?
this is great for the country. I understand that what is good for the country is not always optimal for your companies, but in your new role I hope that you will mostly put 🇺🇸 first.
— Sam Altman (@sama) January 22, 2025
Another person involved said the funding would be a combination of equity from founders and co-investors as well as debt, but added: “We are ready to deploy $100 billion immediately.”
Musk, who co-chairs the newly created Department of Government Efficiency, has been in a long-running feud with OpenAI, Altman and the startup’s biggest backer, Microsoft. Musk co-founded OpenAI, but left the board in 2018 after falling out with Altman.
The Tesla boss launched a series of lawsuits against the two companies and Altman, alleging that they compromised their mission to create widely useful artificial intelligence models by prioritizing profits instead.
Their spat now threatens to strain Musk’s relationship with the new president, who has touted the project as an early victory in his plans to boost US investment through low taxes and deregulation.
Trump unveiled Stargate on Tuesday at the White House, alongside Altman, SoftBank Chairman Masayoshi Son and Oracle co-founder Larry Ellison.
The president said Stargate would create 100,000 jobs and represent a victory against China, helping to keep the “future of technology” in the US. He also said he would use “emergency declarations” to speed up access to the vast amounts of electricity that will be needed.
In an interview with CNBC on Wednesday, Microsoft CEO Satya Nadella said his company had planned $80 billion in capital expenditures this year, separate from Stargate. “All I know is that I’m good for my $80 billion,” he said.
Shares in Japan’s SoftBank jumped more than 10 percent on Wednesday after Trump unveiled the joint venture, which plans to spend $100 billion on technology infrastructure, rising to $500 billion over the next four years.
Other public companies involved in Stargate also saw 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 manage the project, is not publicly traded.
SoftBank and OpenAI declined to comment. MGX and Oracle did not immediately respond to requests for comment.
