President Trump makes a major infrastructure announcement on his second day in office.
Business magnate and X CEO Elon Musk has cast doubt on whether there is enough funding available to follow through on a massive $500 billion artificial intelligence (AI) infrastructure project announced by President Donald Trump on Tuesday.
The new project, called Stargate, will see Softbank, OpenAI and Oracle join forces to build data centers in the U.S. for the further development of AI, which holds the promise of increasing productivity by automating work.
Larry Ellison, the chair of Oracle, also suggested that the project could make it easier to treat diseases such as cancer by possibly developing a customized vaccine by tying the technology with digital health records.
Elon Musk, right, has cast doubt on whether there is enough funding available to follow through on a massive $500 billion artificial intelligence (AI) infrastructure project announced by President Donald Trump on Tuesday. OpenAI CEO Sam Altman pushed (Aaron Schwartz/Sipa/Bloomberg via Getty Images and Saul Loeb-Pool/Getty Images. / Getty Images)
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The initial investment is expected to be $100 billion and could reach five times that sum. Microsoft, NVIDIA, investor MGX and the chipmakers Arm are also partners in the project.
“The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately,” an announcement by OpenAI posted to X on Tuesday reads.
But Musk, who has had a fractured relationship with OpenAI CEO Sam Altman, suggested on X that the AI company does not have the cash to back up its announcement.
“They don’t actually have the money,” Musk tweeted on X in response to OpenAI’s post.
“Musk then followed up his post by writing, “SoftBank has well under $10B secured. I have that on good authority.”
But Altman clapped back on Musk’s assertions.
Trump speaks in the Roosevelt Room at the White House on Jan. 21, 2025, in Washington, D.C., announcing Stargate. (JIM WATSON/AFP via Getty Images / Getty Images)
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“Wrong, as you surely know. Want to come visit the first site already underway?” Altman wrote.
“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.”
Altman also appeared to dial the situation down, commending Musk for being one of “the most inspiring entrepreneurs of our time.”
In March, Tesla CEO Musk announced he was suing ChatGPT-maker OpenAI and Altman, among others, saying they had abandoned the company’s original founding mission to develop open-source artificial general intelligence technology for the benefit of humanity over…
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