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Donald Trump’s $500 billion AI project ‘Stargate’ starts war of words between Elon Musk and Sam Altman

OpenAI’s CEO Sam Altman retorted to Elon Musk’s jibe at the ‘Stargate’ and said that the world’s richest person is “wrong” in his assessment of the project.

elon musk, sam altman, AI, chatgpt, openai

The offer to takeover the ChatGPT parent is being backed by Elon Musk owned xAI, Baron Capital Group, Valor Management and several other private equity firms. (Image: Reuters)

In a high-profile announcement from the White House, US President Donald Trump revealed the formation of a $500 billion joint venture aimed at establishing a robust AI infrastructure within the United States. Dubbed “Stargate,” the project will focus on building data centres and other key AI technologies, with initial backing from leading companies such as SoftBank, OpenAI, Oracle, and MGX.

Technology partners for the venture include Arm Holdings, Microsoft, and Nvidia. The project will require an initial investment of $100 billion to begin work on critical infrastructure, and proponents claim that it will position the US as a leader in artificial intelligence development.

The announcement event was attended by a lineup of influential figures, including OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, Oracle’s CTO Larry Ellison, and Trump himself.

Announcing The Stargate Project

The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…

— OpenAI (@OpenAI) January 21, 2025

What is Stargate?

Stargate is being hailed as a strategic initiative designed to bolster US competitiveness in the rapidly advancing field of AI. According to OpenAI, one of the lead partners, the project will “not only secure American leadership in AI but also support the re-industrialization of the United States” by creating hundreds of thousands of new jobs.

Sam Altman’s OpenAI, the organization behind AI language model ChatGPT, has been tasked with overseeing the operational side of the project, while SoftBank will shoulder the financial responsibilities.

The project’s goals extend beyond job creation, with national security concerns also at the forefront. “Stargate” will provide what OpenAI described as a “strategic capability to protect the national security of America and its allies.”

Elon Musk questions funding

However, the rollout of Stargate wasn’t without controversy. Shortly after OpenAI shared details of the project on social media platform X, Tesla and SpaceX CEO Elon Musk weighed in with scepticism about the viability of the plan.

“They don’t actually have the money,” Musk posted, referring to SoftBank’s financial commitment. “SoftBank has well under $10B secured. I have that on good authority.”

They don’t actually have the money

— Elon Musk (@elonmusk) January 22, 2025

Musk’s comments appeared to challenge the financial underpinnings of the project, casting doubt on SoftBank’s ability to support the scale of investment required for Stargate.

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Sam Altman defends project’s credibility

In response to Musk’s public critique, OpenAI’s CEO Sam Altman defended Stargate, calling Musk’s assessment “wrong.” Altman also emphasized that work on the project had already begun.

“Wrong, as you surely know,” Altman wrote in his retort. “Want to come visit the first site already under way? This is great for the country. I realize 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.”

wrong, as you surely know.

want to come visit the first site already under way?

this is great for the country. i realize 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 🇺🇸 first.

— Sam Altman (@sama) January 22, 2025

A history of feuds between Musk and Altman

The latest exchange between Musk and Altman is the continuation of a long-standing tension between the two tech titans. Once collaborators, Musk and Altman were early investors and co-founders of OpenAI in 2015, with Musk initially playing a key role in shaping the AI research organization’s direction.

Also Read | Sam Altman says AI agents will enter workforce in 2025, OpenAI confident of achieving AGI

However, Musk eventually parted ways with OpenAI, citing differences over the organization’s direction and safety protocols surrounding the development of artificial general intelligence. Musk has since been a vocal critic of OpenAI’s approach, particularly after the company moved from a nonprofit to a capped-profit model in 2019.

In recent years, Musk has raised concerns about the risks of uncontrolled AI development. He has frequently sparred with Altman, who remains committed to advancing AI capabilities while advocating for responsible AI safety measures.

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Stargate’s potential impact

The Stargate project marks a significant step in the US government’s efforts to secure AI infrastructure. The initiative promises to unlock vast economic potential, with proponents arguing that it will generate substantial benefits not just for the US but for the global economy.

The project’s success, however, hinges on securing the full $500 billion investment and navigating the complex political and industrial landscape necessary to scale AI infrastructure on this magnitude.

For now, Trump, Altman, and their partners are focused on ensuring Stargate delivers on its promise, even as industry giants like Musk cast a shadow of doubt over its prospects.