War of words between Elon Musk & Sam Altman over $500 bn Stargate project

Elon Musk

Tech billionaire Elon Musk and OpenAI CEO Sam Altman engaged in a verbal feud after the announcement of the Stargate artificial intelligence infrastructure project, which is being backed by US President Donald Trump.

OpenAI, under Sam Altman’s leadership, has announced the Stargate Project, with a goal to invest $500 billion into AI infrastructure in the US over the next four years, in partnership with SoftBank, Oracle, and MGX. Elon Musk, the CEO of Tesla and SpaceX, countered on Wednesday, saying, “They don’t actually have the money.”

As per a statement by OpenAI, they will begin deploying $100 billion immediately. “This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. This project will not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies,” said the ChatGPT maker.

The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman.

Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. “The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements,” the statement read.

Responding to the post, Musk wrote, “They don’t actually have the money”. “SoftBank has well under $10B secured. I have that on good authority,” the Tesla CEO wrote separately.

They dont actually have the money
Elon Musk (@elonmusk) January 22, 2025

Musk also seemed to align with a sentiment from an X user, implying that OpenAI and Microsoft’s collaboration could be in jeopardy. A user posted, “OpenAI and Microsoft are done,” and Musk responded with, “Seems to be the case.

Seems to be the case Elon Musk (@elonmusk) January 22, 2025

Meanwhile, US President Donald Trump termed the venture as “a resounding declaration of confidence in America’s potential” under his new administration.

In response to Musk’s critique, OpenAI’s CEO Sam Altman defended Stargate, calling Musk’s assessment “wrong.” Altman also emphasized that work on the project had already begun.

Sam Altman just responded to Elon Musk saying Project Stargate doesnt actually have the money pic.twitter.com/rK7ri8A5Im
Evan (@StockMKTNewz) January 22, 2025

“Wrong, as you surely know,” Altman wrote in his retort. “Want to come visit the first site already under way? This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put America first.”