US President Donald Trump recently announced a massive investment in artificial intelligence infrastructure, with plans to create a new company called Stargate. The project is expected to bring in up to $500 billion in funding over the coming years. However, “First Buddy” Elon Musk has expressed doubts about the project’s viability.
Musk claimed that the White House does not have enough money for the project and that SoftBank has less than $10 billion secured for it. Musk also claimed that he had this information on good authority.
But a source familiar with Stargate says Musk’s assertion is incorrect. The source points out that SoftBank has $24.3 billion in cash on its balance sheet, and OpenAI has over $10 billion from recent funding rounds. Additionally, Oracle has $11 billion in cash reserves, while Microsoft, working with OpenAI on the project, has pledged $80 billion.
The White House press secretary, Karoline Leavitt, rebuffed Musk’s comments, saying that Americans should take the announcement at face value and trust the CEOs’ words. Elon Altman, CEO of OpenAI, also responded to Musk’s claims, stating that he wants to visit one of the project’s sites and believes it will be great for the country.
The controversy highlights the ongoing lawsuit between Musk and OpenAI, with Musk accusing the company of abandoning its original nonprofit mission by reserving advanced AI technology for private customers. The companies involved in Stargate have not publicly disclosed how they plan to fund the project, but they may raise debt or sign on other equity investors.
Source: https://edition.cnn.com/2025/01/22/tech/elon-musk-trump-stargate-openai/index.html