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OpenAI and Microsoft have backed down from Elon Musk's criticism of Stargate, a new $500 billion artificial intelligence project that was hailed by Donald Trump as “a resounding declaration of confidence in American power under the new president”.
In a rare break with Trump, Musk on Tuesday evening they poured cold water on the project, writing: “In fact, they have no money.” He added that he had it on “good authority” that SoftBank secured less than $10bn.
OpenAI CEO Sam Altman responded on Wednesday that Musk's claim was “wrong, as you surely know”.
“I understand that what is best for this country is not always what is best for your companies, but in your new role I hope you will put (the US) first,” he wrote.
While Stargate's founding investors – SoftBank, OpenAI, Oracle and MGX, the Abu Dhabi state AI fund – will put some of their capital to work in the company, a large part of the first 100bn is expected to come from investors – money for new people who have worked. has yet to be identified, according to one person involved in the project.
wrong, as you surely know.
Want to come and visit the first place that is already on the way?
this is good for the country. I understand that what is good for the country is not always what is good for your companies, but in your new role I hope you will put 🇺🇸 first.
— Sam Altman (@sama) January 22, 2025
Another person involved said the funding would be a combination of equity from founding partners and investors, as well as debt, but added: “We are ready to deploy $100 billion immediately.”
Musk, who chairs the new Department of State Operations, has long been involved with OpenAI, Altman and major supporter Microsoft. Musk was a founder of OpenAI, but left the board in 2018 after falling out with Altman.
Tesla's boss has launched a number of lawsuits against both companies and Altman, claiming that they have jeopardized their work to create AI models that are generally profitable by putting profit first.
Their spat now threatens to put a degree of tension in Musk's relationship with the new president, who presented the project as an early success in his plans to drive investment in the US through low taxes and cuts.
Trump unveiled Stargate on Tuesday at the White House, surrounded by Altman, SoftBank chairman Masayoshi Son and Oracle co-founder Larry Ellison.
The president suggested that Stargate would create 100,000 jobs and represent a victory against China, helping to preserve the “technological future” of the US. He also said he would use “emergency announcements” to speed up access to the large amounts of electricity it will need.
In an interview with CNBC on Wednesday, Microsoft CEO Satya Nadella said his company has $80 billion in capital spending planned this year, separate from Stargate. “All I know is that I am ready for my 80bn,” he said.
Shares in Japan's SoftBank jumped more than 10 percent on Wednesday after Trump revealed the partnership, which plans to spend $100 billion on technology infrastructure, increased it to $500 billion over the next four years.
Other public companies involved in Stargate also saw their share prices rise. Oracle added 7 percent, while Arm, Nvidia and Microsoft – technical partners in the project – received 17 percent, 4 percent and 3 percent respectively. OpenAI, which will run the project, is not publicly traded.
SoftBank and OpenAI declined to comment. MGX and Oracle did not immediately respond to requests for comment.