Elon Musk asserted late Tuesday that major technology firms OpenAI, Oracle, and SoftBank lack the financial resources to meet their ambitious commitment of investing $500 billion in U.S. artificial intelligence infrastructure.
The CEO of Tesla and SpaceX made this statement shortly after President Donald Trump introduced the extensive initiative at the White House on his first full day in office.
“They don’t actually have the money,” Musk commented in response to an OpenAI announcement on his social media platform X regarding the new initiative, referred to as the Stargate project.
“SoftBank has well under $10 billion secured. I have that on good authority,” Musk added in a follow-up message.
As Trump’s most significant financial supporter for the 2024 election, Musk is currently leading a significant government efficiency initiative at the White House.
On Wednesday morning, OpenAI CEO Sam Altman directly addressed Musk’s remarks.
“I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time,” Altman stated on X.
However, he countered Musk’s assertion about SoftBank’s financial situation, calling it “wrong, as you surely know,” in a subsequent post.
“I understand that what benefits the country isn’t always aligned with your companies' interests, but in your new role, I hope you’ll prioritize [American flag emoji] first,” he added.
OpenAI and Oracle did not respond immediately to CNBC’s inquiries regarding Musk’s claims, while SoftBank opted not to comment.
According to a source familiar with the AI project, who requested anonymity, Musk’s remarks about SoftBank were “far off base.”
“There’s no doubt” that Musk’s strained relationship with Altman prompted his comments about Stargate, the source noted.
Musk’s statements cast doubt on Trump’s announcement earlier that day, which stated that Stargate “will invest at least $500 billion” and generate “over 100,000 American jobs almost immediately.”
“I think it’s going to be something that’s very special. It’ll lead to something that could be the biggest of all,” Trump remarked.
During his remarks, Trump was accompanied by Altman, Oracle co-founder Larry Ellison, and Softbank CEO Masayoshi Son.
At the event, Ellison announced that construction is already underway for 10 data centers, each spanning 500,000 square feet, in Abilene, Texas, with plans for an additional 10 centers in development.
CNBC has reported that Trump had a phone conversation with Altman last week. Their extensive discussion revolved around the potential of AI to enhance quality of life and emphasized the necessity of establishing its infrastructure within the United States rather than in China.
Musk, who heads Trump’s new government efficiency advisory board, DOGE, has a complicated relationship with Altman.
In March, Musk and his AI venture, xAI, filed a lawsuit against OpenAI for breach of contract. Although Musk later withdrew that lawsuit, he initiated another against Altman in federal court in August.
Altman’s response on X reflected his previous public stance toward Musk.
“I may turn out to be wrong, but I believe quite firmly that Elon will act appropriately,” Altman stated in December when asked about his concerns regarding Musk's potential influence in the White House.
OpenAI announced on X that Stargate “will begin deploying $100 billion immediately.”
Son is set to serve as chairman of the new company, which will be initially funded by SoftBank, OpenAI, Oracle, and the UAE-based lender MGX, as noted in the post.
The announcement regarding the infrastructure initiative resulted in a 7% increase in Oracle shares on Tuesday.
OpenAI's post also identified Microsoft as one of its primary initial technology partners in Stargate. Earlier in January, the company revealed plans to invest $80 billion in AI-capable data centers over the next fiscal year.
When asked on CNBC’s “Squawk Box” about Stargate, Microsoft CEO Satya Nadella stated, “I’m not particularly familiar with the specifics of their investment.”
Slovak members of parliament have reported that Poland refused them passage while en route to Moscow.
In response to Musk’s comments questioning the funding for Stargate, Nadella remarked, “All I can say is, I’m committed to my $80 billion.”
