Musk and Altman Dispute Over Trump's Stargate AI Project

Elon Musk is currently in conflict with Sam Altman, the CEO of OpenAI, regarding the Stargate artificial intelligence infrastructure project that has received backing from former President Donald Trump. This disagreement is the latest development in a long-standing rivalry between the two tech billionaires, dating back to discussions within OpenAI's board of directors.

On Tuesday, Trump announced a new partnership involving OpenAI, along with Oracle and SoftBank, which aims to invest up to $500 billion into the Stargate project. According to Trump, this initiative represents a significant vote of confidence in America’s future under his administration. Initial private investments are expected to reach $100 billion, with the potential for the total to climb significantly higher.

However, Musk, a key advisor to Trump and a prominent figure in the tech industry, voiced skepticism about the funding shortly after the announcement. He challenged the credibility of the investment, tweeting from his social media platform, X, that "They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority."

Sam Altman swiftly responded, asserting that Musk was incorrect and invited him to visit the initial Stargate site, which is currently under construction in Texas. Altman emphasized the broader benefits of the project, stating, "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," and illustrated his point with a U.S. flag emoji.

This public disagreement over the Stargate project is indicative of a deeper conflict that has existed between Musk and Altman for years, originating from disagreements over the leadership of OpenAI. Musk, who was an early investor and board member at OpenAI, has initiated legal action against the company, claiming that it has strayed from its original mission of being a nonprofit focused on benefiting the public. He has called for a judicial intervention to halt OpenAI's transition into a for-profit entity, with a court hearing scheduled for February in California.

Last year, Musk established his own AI company, xAI, which is also developing a significant data center in Memphis, Tennessee. He argues that his company faces unfair competition from OpenAI and Microsoft, which has provided extensive resources to OpenAI for creating advanced AI systems like ChatGPT.

The Beginning of Stargate

The Stargate project was first reported by The Information in March 2024, revealing that plans for the initiative predated Trump's announcement. In July, Crusoe Energy Systems also disclosed its engagement in building a large, specialized AI data center in Abilene, Texas, in collaboration with energy technology company Lancium. This project also claimed to be supported by a multibillion-dollar investment, though specific financial backers were not publicly identified.

Both Crusoe and Lancium have committed to utilizing renewable energy sources to power this data center, ensuring an environmentally friendly approach to energy consumption. Furthermore, construction on this data center commenced approximately nine months ago, although local officials did not anticipate the scale of the project as it developed.

Microsoft's Involvement

Interestingly, Microsoft, known for its substantial investment in OpenAI, was not present during Trump’s recent announcement. Nevertheless, Microsoft confirmed its involvement in the Stargate initiative while indicating that its partnership with OpenAI would continue evolving to support the model's research and development.

During a recent interview at the World Economic Forum, Microsoft CEO Satya Nadella addressed Musk's critical remarks regarding Stargate by shifting focus to Microsoft's significant investment in AI infrastructure, which totals around $80 billion, with a notable $50 billion allocated for developments within the U.S. He jokingly stated, "Look, all I know is, I’m good for my $80 billion."

Musk, Altman, AI