Wed Jan 22 23:15:50 UTC 2025: ## Musk Challenges Trump’s $500 Billion AI Investment

**DAVOS, Switzerland –** A public feud between Elon Musk and OpenAI CEO Sam Altman has erupted over President Trump’s announcement of a massive $500 billion investment in a new artificial intelligence (AI) infrastructure project called Stargate.

Trump unveiled the joint venture between OpenAI, Oracle, and SoftBank on Tuesday, boasting it as a testament to America’s economic potential. The initiative plans to build data centers powered by renewable energy, with an initial $100 billion private investment potentially growing fivefold.

However, Musk, a former OpenAI board member and close Trump advisor, swiftly challenged the deal’s viability on X, claiming SoftBank’s commitment is far less than advertised. “They don’t actually have the money,” Musk posted, asserting that SoftBank has secured significantly less than the $10 billion suggested.

Altman fired back, dismissing Musk’s claims and inviting him to visit a Texas construction site already underway. He emphasized the project’s national benefit, even if it might not be optimal for individual companies.

The clash is the latest escalation in a long-running dispute between the two tech giants, stemming from disagreements over OpenAI’s direction and governance. Musk, who also heads Tesla, SpaceX, and X, is currently suing OpenAI, alleging it has deviated from its non-profit mission. He has also launched his own AI company, xAI, claiming unfair competition from OpenAI and its partner, Microsoft.

While Trump’s announcement highlighted the participation of OpenAI, Oracle, and SoftBank, Microsoft’s role was less prominent, despite its substantial prior investment in OpenAI. Microsoft confirmed its involvement in Stargate but emphasized its partnership with OpenAI would evolve to allow the latter to expand its research and model training capabilities. Microsoft CEO Satya Nadella, in a separate interview, highlighted his company’s own $80 billion plan for global AI infrastructure.

The Stargate project, initially reported in March 2024, appears to include at least one data center already under construction in Texas, built in partnership with Crusoe Energy Systems and Lancium. While these companies have previously announced a multi-billion dollar investment, details surrounding its connection to the broader Stargate initiative remain unclear. Oracle co-founder Larry Ellison suggested the Texas project is just the first of potentially 20 such data centers planned. The discrepancy between Trump’s announcement and Musk’s skepticism raises questions about the funding and scope of this ambitious AI project.

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