Elon Musk has publicly criticized Trump's $500 billion AI initiative, Stargate, calling it unrealistic. He argued the funding is insufficient for such an ambitious project. Musk's comments on social media reportedly caused tensions within Trump's administration. The project aims to enhance AI infrastructure and create jobs, backed by OpenAI, SoftBank, and Oracle. However, Musk's skepticism and ongoing disputes with key figures could influence its future and broader tech industry dynamics.
Although Elon Musk has been a prominent figure in the tech industry, his recent public criticism of Trump's $500 billion AI initiative, Stargate, has sparked significant tension. Musk's criticism focused on the project's funding, which he deemed insufficient. Shortly after the initiative's announcement, Musk took to the social media platform X to voice his concerns, stating, "They don't actually have the money." He specifically questioned SoftBank's role in the project, claiming the company had "well under $10B secured" for Stargate. Despite the announcement of an immediate deployment of $100 billion, Musk remained skeptical about the initiative's overall financial viability.
The Stargate project, a collaboration between OpenAI, SoftBank, and Oracle, aims to invest up to $500 billion over four years to develop AI infrastructure in the U.S. The initiative plans to create over 100,000 jobs and build data centers across the country to advance AI capabilities, including in medical sciences. However, Musk's public remarks have caused friction within Trump's administration, with some aides reportedly "furious" over his comments. This tension highlights a broader conflict between Musk and key figures involved in the project.
Sam Altman, CEO of OpenAI, responded to Musk's criticism by inviting him to visit a site where funding is being utilized, emphasizing the project's potential benefits for the country. The exchange underscores the long-standing feud between Musk and Altman, who are also entangled in a legal battle. President Donald Trump announced Stargate on January 22, 2025, marking the second day of his presidency.
Meanwhile, Microsoft CEO Satya Nadella reaffirmed his commitment to his own $80 billion AI investment plan, distancing himself from the controversy. Trump downplayed Musk's remarks, attributing them to Musk's personal dislike for someone involved in the initiative. The White House defended Stargate, emphasizing that the investments are privately funded and will create American jobs.
This incident raises questions about the future dynamics between Musk, Trump's administration, and the broader tech industry.
