Elon Musk Casts Doubt on Trump-Backed Stargate AI Project
On January 21, 2025, newly inaugurated U.S. President Donald Trump announced the launch of the "Stargate" project, the largest artificial intelligence infrastructure initiative in history. The project, a joint venture involving OpenAI, Oracle, and SoftBank, aims to establish America as the global leader in AI technology. President Trump made the announcement during a press conference at the White House, accompanied by Sam Altman, CEO of OpenAI; Larry Ellison, Chairman of Oracle; and Masayoshi Son, CEO of SoftBank.
Historic Investment in AI
Stargate will involve a total investment of $500 billion over the next four years, with an initial $100 billion earmarked for immediate deployment. According to President Trump, the project will create over 100,000 jobs in the United States, building the infrastructure to power next-generation AI systems.
“This will be the largest AI infrastructure project in history,” Trump declared, emphasizing the project’s potential to transform the U.S. economy and secure its position as a global technology leader.
Oracle Chairman Larry Ellison revealed that construction of the project's first major milestone, a one-million-square-foot data center in Texas, is already underway. He described the data center as a critical component of Stargate’s mission to develop “physical and virtual infrastructure for advanced AI.”
Sam Altman Praises Presidential Support
Sam Altman, CEO of OpenAI and a key figure in Stargate, expressed gratitude to President Trump, saying, “I think this will be the most important project of this era, and we wouldn’t be able to do this without you, Mr. President.” Altman highlighted Stargate’s role in positioning the U.S. at the forefront of AI innovation.
Masayoshi Son of SoftBank underscored the collaborative nature of the initiative, stating, “This partnership will change the course of AI development globally.”
Elon Musk’s Criticism of Stargate
Notably absent from the partnership was Elon Musk, CEO of Tesla, SpaceX, and xAI. Musk, who has been critical of OpenAI and its leadership in recent years, expressed skepticism about Stargate’s feasibility. On his social media platform X (formerly Twitter), Musk responded to OpenAI’s announcement, writing, “They don’t actually have the money ($500 billion),” and claimed that SoftBank has “well under $10B secured.” He also engaged with users mocking the project, suggesting that a fallout between OpenAI and its key partner Microsoft may have occurred.
Musk’s critiques are part of a long-standing rivalry with OpenAI. A co-founder of OpenAI in 2015, Musk left the organization in 2018 over strategic differences. Since then, his relationship with OpenAI CEO Sam Altman has deteriorated, with Musk filing multiple lawsuits against the company. In one lawsuit, Musk alleged that OpenAI betrayed its original mission as a nonprofit, claiming, “The perfidy and deceit is of Shakespearean proportions.”
Financial Questions and Future Challenges
The financial commitments behind Stargate have raised eyebrows. Reports indicate that Oracle has approximately $11 billion in cash reserves, while SoftBank holds about $30 billion. OpenAI, which has operated on borrowed funds, remains a loss-making organization. Despite these concerns, the three companies pledged to contribute the initial $100 billion required to launch Stargate, while committing to meet the $500 billion target over the coming years.
The Path Forward
As construction of the Texas data center progresses, Stargate’s success will depend on its ability to deliver on its promises of transformative AI infrastructure and economic growth. While Elon Musk's skepticism adds a layer of controversy, Stargate’s backers remain confident that the project will cement America’s global leadership in artificial intelligence.
In the words of Sam Altman, “Stargate will position the United States as the global leader in AI technology for decades to come.”
