Elon Musk challenged the financial viability of a major White House AI initiative on Tuesday, sparking a public dispute with OpenAI CEO Sam Altman hours after President Donald Trump announced the $500 billion Stargate project.
“They don’t actually have the money,” Musk posted on X, claiming SoftBank had secured “well under $10B” for the Stargate Project. The venture aims to develop AI infrastructure through partnerships between SoftBank, OpenAI, and Oracle.
This allegation comes as Musk wields significant influence in Trump’s administration—he was considered so influential that people were calling him “shadow president” shortly after Trump was elected.
Altman fired back at his former OpenAI co-founder, inviting Musk to visit the project’s first site. “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,” Altman wrote on X.
Sponsored · Granada Gold Mine Inc.
The relationship between Musk and Altman has been salty for a while. Musk left OpenAI’s board in 2018 over a conflict of interest and differences in vision. Last year, he sued the company for allegedly abandoning its nonprofit mission through its Microsoft partnership. He also gave Altman the nickname “Swindly Sam.”
Altman sounded more diplomatic despite the criticism. “I don’t think he’s a nice person or treating us fairly but you have to respect the guy and he pushes all of us to be more ambitious,” he posted Wednesday.
Microsoft CEO Satya Nadella defended the project’s funding on CNBC, stating “all I know is I’m good for my $80 billion.” Sources familiar with Stargate said SoftBank holds $24.3 billion in cash reserves and can access additional capital through debt financing.
Altman has recently shifted his stance on Trump, attending the inauguration and posting that Trump “will be incredible for the country in many ways” despite previously opposing his 2020 campaign.
The companies plan to invest an initial $100 billion in Stargate, with the potential to reach $500 billion in coming years. White House Press Secretary Karoline Leavitt defended the project and underlined its importance in competing with China’s AI advancements.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
