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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 hailed by Donald Trump as “a resounding declaration of confidence in America’s prospects under a new president.”
In a rare break with Trump, musk Pouring cold water on the project on Tuesday evening, he wrote: “They don’t really have the money.” He added that he had “on good authority” that SoftBank secured less than $10 billion.
Sam Altman, chief executive of OpenAI, responded on Wednesday that Musk’s claim was “wrong, as you must know”.
“I understand that what is best for the country is not always what is best for your company, but in your new role I hope you will make the most of [the US] First,” he wrote.
Stargate’s founding investors — SoftBank, OpenAI, Oracle and MGX, the Abu Dhabi state AI fund — will put some of their own capital to work in the company, with a large portion of the initial $100 billion expected to come from new investors. has yet to be identified, according to someone involved in the project.
Wrong, you know.
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It is great for the country. I understand that what is best for the country is not always what is best for your company, but in your new role I hope you put 🇺🇸 first in most cases.
— Sam Altman (@sama) January 22, 2025
Another person involved said the fund would be a combination of equity as well as debt from founding partners and co-investors, but added: “We are ready to deploy $100 billion immediately.”
Musk, who co-chairs the newly formed Department of Government Skills, has long been at odds with OpenAI, Altman and the start-up’s biggest backer, Microsoft. Musk was a co-founder of OpenAI, but left the board in 2018 after clashing with Altman.
Tesla has launched a number of lawsuits against the two major companies and Altman, claiming they compromised their goal of creating widely useful AI models instead of prioritizing profits.
Their spat now threatens to inject some tension into Musk’s relationship with the new president, who presented the project as an early victory in his plan to drive investment in the US through lower taxes and deregulation.
Trump unveiled Stargate at the White House on Tuesday, flanked by Altman, SoftBank Chair Masayoshi Son and Oracle co-founder Larry Ellison.
The president suggested Stargate would create 100,000 jobs and represent a victory over China, helping to keep the “future of technology” in the United States. He also said he would use “emergency declarations” to expedite access to large amounts of electricity that would be needed.
In an interview with CNBC on Wednesday, Microsoft Chief Executive Satya Nadella said his company had $80 billion in planned capital spending this year, separate from Stargate. “All I know is I’m good for my $80 billion,” he said.
Shares of 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.
Share prices of other public companies involved in Stargate also rose. Oracle added 7 percent, while Arm, Nvidia and Microsoft – the project’s technology partners – 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.
