A fresh conflict has ignited between Tesla CEO Elon Musk and OpenAI’s chief, Sam Altman, over a newly unveiled artificial intelligence initiative called Stargate. The ambitious $500 billion project, championed by former President Donald Trump, seeks to revolutionise AI infrastructure by building advanced data centers and power facilities across the United States.
Unveiled as a joint effort involving OpenAI, Oracle, and SoftBank, Stargate’s initial phase comes with a private investment of $100 billion. Trump hailed the venture as a testament to America’s innovative strength, describing it as a game-changer for the country’s AI ecosystem.
What Did Musk Say?
However, Musk voiced scepticism over the funding claims, suggesting the financial backing is far from secure. “They don’t actually have the money,” Musk wrote on X (formerly Twitter). He further alleged that SoftBank’s secured investment falls significantly short of expectations.
Altman Defends
Sam Altman, defending the project, dismissed Musk’s remarks as baseless. In a pointed response, Altman invited Musk to visit Stargate’s first construction site in Texas, emphasising the project’s potential benefits for national progress. “
This is great for the country,” Altman noted, adding that he hoped Musk’s current advisory role would prioritise the nation’s interests over personal business ventures.
Musk Vs Altman
The public spat is rooted in a long-standing rivalry between the two tech magnates, dating back to their time at OpenAI. Musk, a co-founder and former board member of OpenAI, has repeatedly criticised the organisation for abandoning its original non-profit goals. He is currently embroiled in a lawsuit to halt OpenAI’s transition into a for-profit entity, with a hearing slated for February.
Adding to the competitive tension, Musk launched his own AI company, xAI, last year, arguing that OpenAI and its key ally, Microsoft, enjoy an unfair market advantage. Meanwhile, Microsoft’s involvement in Stargate remains unclear. While the tech giant has reaffirmed its ongoing investment in AI infrastructure, CEO Satya Nadella highlighted Microsoft’s independent $80 billion AI development plan, sidestepping questions about Musk’s criticisms.
The Stargate initiative also carries intrigue regarding its origins. Initial reports in early 2024 described a Texas-based AI data center project led by Crusoe Energy Systems and Lancium, with undisclosed investors. How this effort evolved into the Stargate project announced by Trump remains uncertain. Oracle co-founder Larry Ellison has confirmed plans for as many as 20 data centers under the Stargate banner, with the Texas site serving as the first milestone.
While the project aims to cement America’s leadership in artificial intelligence, the public clash between Musk and Altman underscores the fractious dynamics shaping the industry’s future.