Musk and Altman Spar Over Trump’s Stargate AI Project

Elon Musk and Sam Altman, the CEO of OpenAI, are in a public disagreement about the Stargate artificial intelligence infrastructure project, which has received praise from former President Donald Trump. This feud has its roots in their previous conflicts regarding control over OpenAI.

Recently, Trump announced a new partnership aiming to invest up to $500 billion to support the Stargate initiative, created by OpenAI in collaboration with companies like Oracle and SoftBank. This ambitious venture is already laying the foundations for data centers and the necessary power generation infrastructure to advance rapidly developing AI technologies.

During his announcement, Trump hailed this venture as a major boost to America's economic potential, kickstarting with an initial investment of $100 billion that could potentially reach $500 billion over time.

However, Musk expressed skepticism about the financial backing for the project shortly after its announcement. On his social media platform X, he stated, "They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority."

Altman quickly responded, asserting that Musk's claims were incorrect. He invited Musk to visit the Texas site where construction for Stargate has already begun. Altman reminded Musk that while the project's success benefits the country, it may not always align with his business interests. He concluded with a U.S. flag emoji, emphasizing his loyalty to American progress.

Roots of the Dispute

This public disagreement is only the latest chapter in an ongoing rivalry between Musk and Altman. Their tensions began with board meetings during the founding of OpenAI, and Musk, initially an investor and board member, later sued the company, claiming it had moved away from its original mission to serve the public as a nonprofit research lab.

In recent developments, Musk has escalated the legal battle, seeking a court order to halt OpenAI's transition toward a for-profit business model. A court hearing on this matter is scheduled for early February in California.

Musk's commitment to the AI space remains strong. He has founded his own competing AI company, xAI, which is working to establish a large data center in Memphis, Tennessee. Musk argues that OpenAI, with significant support from Microsoft, unfairly competes against his ventures.

Background on Stargate

The Stargate project was initially reported by the tech news outlet The Information in March 2024, long before Trump made the announcement public. Another entity, Crusoe Energy Systems, stated in July that it was building a specialized AI data center in Abilene, Texas, and mentioned a substantial investment without revealing its sources.

The energy needs of AI development are considerable, and both Crusoe and its partner Lancium declared that their project would utilize renewable energy inputs, particularly from nearby solar farms, allowing them to provide green energy at a lower cost, according to Lancium's CEO.

Confusion remains regarding how this Abilene project fits within the Stargate initiative. Oracle co-founder Larry Ellison revealed that the Abilene data center is just the first of potentially 10 to 20 planned facilities.

Microsoft's Role

Notably absent from Trump's announcement was Microsoft, a long-time supporter of OpenAI with significant investments. Microsoft later confirmed its involvement in the Stargate project, noting that its partnership with OpenAI will evolve to help build further capacity for research purposes.

In response to Musk's skepticism about the deal during a CNBC interview at the World Economic Forum, Microsoft CEO Satya Nadella highlighted his company's plan to invest $80 billion in AI infrastructure globally, including $50 billion specifically within the U.S. He confidently remarked, "Look, all I know is, I’m good for my $80 billion," while sharing a laugh.

Musk, Altman, AI