
Shortly after former President Donald Trump unveiled a massive $500 billion artificial intelligence (AI) project named Stargate, billionaire entrepreneur Elon Musk raised doubts about its financial backing. Musk, commenting on his social media platform X, stated, “They don’t actually have the money. SoftBank has well under $10 billion secured. I have that on good authority.”
The Stargate project, announced by Trump alongside executives from SoftBank, OpenAI, and Oracle, aims to bolster AI infrastructure in the United States. The initiative plans to kick off with $100 billion in initial investments and gradually scale to $500 billion. This ambitious project, according to Trump, is set to position the U.S. as a global leader in AI while creating substantial job opportunities.
However, Musk’s public skepticism is significant given his close ties to the Trump administration. Musk was reportedly present at the White House during the announcement and has been involved in discussions on various matters, including advocating for clemency for controversial figures. His criticism of Stargate, however, aligns with his ongoing legal and personal disputes with OpenAI and its CEO, Sam Altman.
Musk, once a co-founder of OpenAI, has voiced concerns over its shift from a nonprofit mission to a for-profit model. He has accused OpenAI of prioritizing private interests and exclusive access to cutting-edge AI technologies, which he believes undermines its original purpose of benefiting humanity as a whole.
In response to Musk’s remarks, White House Press Secretary Karoline Leavitt dismissed the claims, emphasizing the credibility of the involved parties. “President Trump and these CEOs are committed to bringing these investments to America, creating jobs, and ensuring the U.S. remains competitive in AI against global adversaries like China,” she said in a televised interview.
Sam Altman, CEO of OpenAI, directly addressed Musk’s criticism on X, writing, “Wrong, as you surely know. Want to visit the first site already underway? This is great for the country. I hope in your new role, you’ll prioritize what’s best for America.”
A source close to the Stargate initiative also refuted Musk’s claims, highlighting the financial strength of the involved companies. SoftBank, according to its latest earnings report, has $24.3 billion in cash and is capable of raising additional capital through debt. Oracle boasts $11 billion in cash reserves, while OpenAI recently secured over $10 billion in venture funding.
Satya Nadella, CEO of Microsoft, a key partner in the Stargate project, added his voice to the discussion during a CNBC interview, stating, “All I know is I’m good for my $80 billion.”
Despite Musk’s criticism, the Stargate project reflects an ambitious effort to expand AI capabilities in the United States. While questions about its financial feasibility remain, the project’s backers argue it is a critical step in securing America’s technological leadership in a rapidly evolving global landscape.
As the initiative takes shape, the debate underscores the complexities of balancing national progress, corporate interests, and public trust in transformative projects like Stargate.