Musk Criticizes Trump’s $500 Billion AI Project, Questions Funding
Washington, Jan 23 – Billionaire tech mogul Elon Musk cast serious doubts yesterday on a massive $500 billion artificial intelligence initiative announced by U.S. President Donald Trump, claiming the funds promised for the ambitious project are not truly secured.
Musk’s remarks mark a notable rift between him and Trump, despite the Tesla and SpaceX CEO’s key role in the administration, having contributed $270 million to Trump’s election campaign.
On his first full day in office, Trump unveiled the Stargate initiative, a groundbreaking AI project spearheaded by Japanese tech conglomerate SoftBank and OpenAI, the company behind the revolutionary ChatGPT. Trump touted the initiative as a transformative investment that would “inject at least $500 billion into AI infrastructure in the United States.”
However, Musk took to his social media platform, X, to question the credibility of the investment. “SoftBank has well under $10B secured. I have that on good authority,” Musk wrote, challenging the financial foundation of the venture.
Musk vs. OpenAI
Musk’s critique appears to partly target OpenAI, a company he co-founded but left in 2018 amidst growing differences with its leadership. OpenAI CEO Sam Altman, who was present at the White House announcement, quickly fired back on X:
“Wrong, as you surely know. Want to visit the first site already under construction?” Altman wrote.
“This is great for the country. I understand what’s great for the country isn’t always optimal for your companies, but in your new role, I hope you’ll put the nation first.”
OpenAI, one of the most highly valued AI startups globally, continues to face significant financial losses due to the high costs of its cutting-edge technology. Musk’s critiques add fuel to the ongoing feud between him and Altman, which has included lawsuits and public disputes.
Funding Questions Persist
According to reports, key investors in the Stargate project include SoftBank, Oracle, Abu Dhabi’s AI-focused MGX fund, and others. SoftBank reportedly has $30 billion in cash, while Oracle holds around $11 billion in reserves. Critics have pointed out that these numbers fall short of the promised $500 billion.
The Stargate initiative has committed an initial $100 billion, with plans to ramp up to $500 billion over four years. Construction has already begun on a data center in Texas, the project’s first major site.
Despite skepticism, the Trump administration remains optimistic. “The American people should take President Trump and those CEOs at their word. These investments will bring jobs and innovation to our great nation,” Trump’s spokeswoman, Karoline Leavitt, told Fox News.
This announcement follows Trump’s earlier success in securing a $20 billion Emirati investment in U.S. data centers and a separate pledge from SoftBank. Technology partners for Stargate include Microsoft, Nvidia, and SoftBank-owned Arm.
A Divisive Vision
As Trump’s administration pushes forward with Stargate, questions surrounding its financial feasibility and Musk’s high-profile criticisms underscore the tensions between political ambition and tech-world realities. The unfolding dynamics will likely shape the future of U.S. AI innovation.