Elon Musk Questions $500 Billion Project Stargate Funding

Tesla Inc. CEO Elon Musk raised concerns on Wednesday regarding the newly announced $500 billion Project Stargate. Shortly after its unveiling, Musk stated that the lead investor, SoftBank Group, has "well under $10 billion" secured for the ambitious initiative.

What Happened: The announcement took place during a White House briefing attended by President Donald Trump. Project Stargate aims to create an extensive artificial intelligence infrastructure across the United States, in collaboration with OpenAI and Oracle Corp.

Musk asserted, "They don't actually have the money. SoftBank has well under $10 billion secured. I have that on good authority." This skepticism raises questions about the viability of such a large project.

During the same briefing, Larry Ellison, co-founder of Oracle, emphasized the project's potential impact on healthcare. He described an AI-driven system that could deliver personalized cancer vaccines in just 48 hours, showcasing one of the innovative applications of the technology.

The launch proposal suggests an immediate deployment of $100 billion, starting with a significant 500,000-square-foot data center slated for construction in Abilene, Texas. There are plans for nine additional facilities, with the possibility of expanding to a total of 20 locations.

As news of the project broke, shares of technology partners like Microsoft Corp. and NVIDIA Corp. saw noticeable gains. NVIDIA's stock climbed by 3.95% to $143.15, while Arm Holdings experienced an 8.94% increase to $162.60.

OpenAI will manage the operational aspects of the initiative, with SoftBank leading the financial components. The project leaders assert it will bolster American leadership in the AI sector and is expected to generate hundreds of thousands of jobs nationwide. Masayoshi Son, the head of SoftBank, is set to chair the initiative.

See Also: Google Parent-Owned Startup To Launch AI-Designed Drug Trials By Year-End, collaborating with Eli Lilly and Novartis to address significant diseases.

Image via Wikimedia Commons

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Elon, SoftBank, AI