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OpenAI and Microsoft have hit back at Elon Musk’s criticism of Stargate, the new $500 billion artificial intelligence infrastructure project hailed by Donald Trump as a “resounding statement of confidence in the potential of America under a new president.”
In a rare break with Trump, Musk On Tuesday evening, he threw cold water on the project, writing: “They actually don’t have the money.” He added that he knew “in good faith” that SoftBank got less than $10 billion.
OpenAI Chief Executive Sam Altman responded Wednesday that Musk’s claim was “false, as I’m sure you know.”
“I realize that what is great for the country is not always what is optimal for your businesses, but in your new role, I hope you will put (the United States) first,” he said. he writes.
While Stargate’s founding investors – SoftBank, OpenAI, Oracle and MGX, Abu Dhabi’s national AI fund – will invest some of their own capital in the company, much of the initial $100 billion is expected to come from new investors who have not yet been identified, according to a person involved in the project.
false, as you surely know.
want to come and visit the first construction site already in progress?
It’s great for the country. I realize that what’s great for the country isn’t always what’s optimal for your businesses, but in your new role, I hope you’ll especially put 🇺🇸 first.
– Sam Altman (@sama) January 22, 2025
Another person involved said the funding would be a combination of equity from the founding partners and co-investors, as well as debt, but added: “We are ready to deploy $100 billion immediately.” »
Musk, who co-chairs the new Department of Government Effectiveness, has long been engaged in a feud with OpenAI, Altman and the startup’s biggest backer, Microsoft. Musk was a co-founder of OpenAI, but left the board in 2018 after a conflict with Altman.
The Tesla chief launched a number of lawsuits against the two companies and Altman, claiming they compromised their mission to create broadly beneficial AI models by prioritizing profits.
Their feud now threatens to inject a degree of tension into Musk’s relationship with the new president, who has presented the project as an early victory in his plan to boost U.S. investment through low taxes and deregulation.
Trump unveiled Stargate on Tuesday at the White House, flanked by Altman, SoftBank Chairman Masayoshi Son and Oracle co-founder Larry Ellison.
The president suggested that Stargate would create 100,000 jobs and represent a victory against China, helping to keep “the future of technology” in the United States. He also said he would use “emergency declarations” to speed up the country’s access to the huge amounts of electricity it will need.
In an interview with CNBC on Wednesday, Microsoft Chief Executive Officer Satya Nadella said his company plans $80 billion in capital spending this year, independent of Stargate. “All I know is I’m good for my $80 billion,” he said.
Shares of Japanese company SoftBank jumped more than 10% on Wednesday after Trump unveiled the joint venture, which plans to spend $100 billion on technology infrastructure, growing to $500 billion over the next four years.
Other public companies involved in Stargate have also seen their stock prices rise. Oracle added 7 percent, while Arm, Nvidia and Microsoft – technology partners in the project – gained 17 percent, 4 percent and 3 percent, respectively. OpenAI, which will operate the project, is not listed on the stock exchange.
SoftBank and OpenAI declined to comment. MGX and Oracle did not immediately respond to requests for comment.