Musk Faults Trump’s $500bn AI Initiative
Elon Musk, the CEO of SpaceX, has expressed skepticism over a $500 billion Artificial Intelligence (AI) initiative announced by U.S. President Donald Trump, saying that the promised investment is not financially backed.
Trump, in his announcement on Tuesday, unveiled the Stargate project, a collaboration involving Japanese giant SoftBank, ChatGPT creator OpenAI, and other tech heavyweights, to build AI infrastructure in the United States. The venture was described as investing at least $500 billion into AI-related infrastructure over the coming years.
However, Musk, who has been a vocal critic of OpenAI after leaving the company in 2018, took to X (formerly Twitter) to call out the financial reality of the project. In a post, he stated that the main investors don’t actually have the money to back the bold claims.
“SoftBank has well under $10 billion secured. I have that on good authority,” Musk wrote, casting doubt on the ability of SoftBank and other partners to fulfill their commitment.
This remark is likely aimed at OpenAI, the AI company Musk helped to found. Musk’s comments have added another layer of tension to an ongoing feud between him and Sam Altman, OpenAI’s CEO, who was present at the White House on Tuesday for the announcement. The two have had legal battles in recent years, with Musk repeatedly criticizing OpenAI’s approach to commercialization and corporate governance.
In response to Musk, Altman defended the initiative, responding directly on X: “Wrong, as you surely know. Want to come visit the first site already underway? This is great for the country.”
Altman continued, “I realise 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 (country) first.”
The Stargate project aims to be a game-changer in AI development, with plans to build data centers in Texas, where construction is already underway. The project has already garnered support from companies like Oracle, Microsoft, and Nvidia, while also securing investments from Abu Dhabi’s AI-focused MGX fund and SoftBank.
The project’s proposed funding includes $100 billion to be deployed immediately, with a total of up to $500 billion earmarked over the next four years. While SoftBank has committed a substantial portion of this amount, critics, including Musk, question whether such a massive financial promise is realistic, especially in light of SoftBank’s current financial standing.
Musk’s comments underline a broader tension within the tech industry. While SoftBank has historically made major investments in U.S. companies, such as Yahoo! and Alibaba, it has also faced high-profile setbacks, including its controversial investment in WeWork.
A representative for Trump defended the project, stating that “these investments are coming to our great country and American jobs are coming along with them.” The initiative is seen as part of the broader push by the Trump administration to promote technology innovation in the U.S.
As the Stargate project continues to unfold, questions about the financial feasibility and long-term impact on U.S. job creation will likely persist. SoftBank founder Masayoshi Son, who appeared alongside Trump, has previously committed $50 billion in investments during Trump’s first term and is now pledging $100 billion for Stargate, with promises of creating 100,000 U.S. jobs.
The project has prompted both excitement and skepticism, with the tech world watching closely to see whether these lofty financial goals can be met or if it will fall victim to the financial difficulties that have plagued some of SoftBank’s past ventures.
