Washington, Jan 23 — Tech mogul Elon Musk raised eyebrows yesterday by casting doubt on a $500 billion artificial intelligence (AI) initiative unveiled by US President Donald Trump. Musk, a key figure in the administration after contributing $270 million to Trump’s election campaign, questioned whether the promised funding for the ambitious project truly exists.
The initiative, called Stargate, was announced on Trump’s first full day in the White House. The president described it as a historic investment in AI infrastructure, spearheaded by Japanese conglomerate SoftBank and ChatGPT-maker OpenAI. Trump claimed the venture would channel “at least $500 billion” into building state-of-the-art AI facilities across the United States.
However, Musk took to his social media platform X to challenge these claims. “The main investors don’t actually have the money,” Musk stated, adding, “SoftBank has well under $10B secured. I have that on good authority.”
Musk vs. OpenAI
The criticism adds a fresh layer to Musk’s longstanding feud with OpenAI, the AI giant he co-founded before parting ways in 2018. Musk and OpenAI’s CEO, Sam Altman, have clashed repeatedly, with Musk filing multiple lawsuits against the company behind the viral chatbot ChatGPT.
Responding to Musk’s skepticism, Altman fired back on X: “Wrong, as you surely know. Want to come visit the first site already under way?” Altman defended the project, emphasizing its potential benefits for the nation. “This is great for the country. I realize what’s great for the country isn’t always optimal for your companies, but in your new role, I hope you’ll mostly put (the country) first.”
Funding Controversy
OpenAI, despite its reputation as one of the world’s most valuable startups, continues to struggle with high operational costs. According to reports, SoftBank has approximately $30 billion in cash reserves, while Oracle, another key investor, holds about $11 billion in liquid assets.
The Stargate project has committed to an initial $100 billion investment, with plans to scale up to $500 billion over the next four years. Alongside SoftBank, Abu Dhabi’s AI-focused state fund MGX, Oracle, and other tech powerhouses like Microsoft, Nvidia, and SoftBank-owned Arm are involved in the venture.
A spokesperson for Trump, Karoline Leavitt, dismissed Musk’s concerns, telling Fox News, “The American people should trust President Trump and these CEOs. These investments are coming, and so are American jobs.”
Progress Underway
Despite the controversy, construction has already begun on a data center operation in Texas, the first of several planned facilities. Earlier this month, Trump also announced a $20 billion Emirati investment in U.S. data centers, along with additional pledges from SoftBank.
As Stargate moves forward, the project’s ambitious scope and its potential impact on the U.S. economy will remain under scrutiny, with Musk’s criticisms adding an extra layer of intrigue to the unfolding story. — AFP
