Elon Musk takes aim at the $500 billion AI project Trump championed, dismissing its backers as financially incapable.
Elon Musk cast doubt on the financial backing of a major White House initiative, stating that just a fraction of the promised funds are actually secured. In a post on his social platform, X, Musk claimed that SoftBank, one of the project's backers, has less than $10 billion secured for the $100 billion initial investment in Stargate, a new AI infrastructure development project announced by President Trump, SoftBank, OpenAI, and Oracle.
This project, expected to grow to a massive $500 billion over the next four years, aims to bolster AI development in the United States. Trump made the announcement surrounded by executives from SoftBank, OpenAI, and Oracle, who together pledge a total investment of $100 billion to kickstart the initiative. With plans to pour up to half a trillion dollars into Stargate in the coming years, the project has raised eyebrows due to its substantial costs.
Musk, in the first days of the Trump administration, even found himself in the Oval Office as Trump signed a pardon for Ross William Ulbright, the founder of the dark web marketplace SilkRoad. Musk was also instrumental in sending a top staffer from his SpaceX and X companies to help secure the release of convicted January 6 rioters after Trump issued a blanket pardon.
However,Musk's criticism of the OpenAI-led Stargate project is not fueled solely by pro-Trump activities. He has a bitter legal dispute with OpenAI and its CEO, Sam Altman, who was present at the White House announcement. Musk alleges that ChatGPT has deviated from its non-profit mission by prioritizing private customers over its core mission, a claim that OpenAI denies.
Though the companies involved in Stargate have yet to reveal how they will secure the necessary funds, they have alternative financial avenues. They could opt for debt financing or secure additional equity investors, which would provide additional financial support for the project. Despite the financial skepticism, the initiative, if successful, could significantly enhance AI infrastructure in the United States.
The tech industry is closely watching Elon Musk's criticism of SoftBank's financial commitment to the Stargate project, given SoftBank's role as a key business partner in this AI infrastructure development initiative. Despite Trump and other partners' initial pledge of $100 billion, Musk claims that SoftBank has only secured less than $10 billion for Stargate.
