Elon Musk has clashed with OpenAI CEO Sam Altman over the Stargate artificial intelligence (AI) infrastructure project touted by President Donald Trump. The latest in a feud between the two tech billionaires began on OpenAI’s board of directors and is now testing Mr. Musk’s influence over the new president. .
President Trump on Tuesday was discussing a joint venture that could invest up to $500 billion through a new partnership created by OpenAI, the maker of ChatGPT, with Oracle and SoftBank.
As a new organization, Stargate has already begun construction of the data centers and power generation needed to further develop its rapidly evolving AI technology.
President Trump declared it a “resounding declaration of confidence in America’s potential” under the new administration, with initial private investment of $100 billion, which could reach five times that amount.
But Musk, a Trump ally who helped fund his campaign and is now leading the government’s cost-cutting program, questioned the value of the investment hours later.
“They don’t actually have the funds,” Musk wrote on his social media platform X. “SoftBank has secured far less than $10 billion in funding. I have it on good authority.”
In response, Altman said Wednesday that Musk was “wrong, as you know,” and invited him to visit the first site in Texas, which is already under construction.
“He’s a great thing for this country. I understand that what’s great for the country isn’t necessarily what’s best for your company, but in his new role, he’ll be putting (America) first.” I hope so,” Altman wrote, using the Stars and Stripes emoji to represent America.
behind the feud
The public clash over Stargate is part of a long-running dispute between Musk and Altman, which began with a boardroom dispute over who should run OpenAI, and which led to a dispute between the two men about the company’s founding. Contributed.
Mr. Musk, an early investor and director of OpenAI, sued the company last year, accusing it of violating its founding purpose as a nonprofit research institute that benefits the public interest rather than profit.
Since then, Musk has escalated the dispute, adding new claims and seeking a court order halting OpenAI’s plans to transform it more fully into a commercial enterprise. A hearing is scheduled for early February in California federal court.
Last year, the world’s richest man, whose portfolio includes companies such as Tesla, SpaceX and X, founded his own rival AI company, xAI, and is building its own massive data center in Memphis, Tennessee. Musk said he faces unfair competition from OpenAI and its close business partner Microsoft, which has provided the vast computing resources needed to build AI systems such as ChatGPT.
When did Stargate begin?
Technology news outlet The Information first reported on the OpenAI data center project, called Stargate, in March 2024, indicating the project was in the works long before President Trump announced it.
Another company, Crusoe Energy Systems, announced in July that it was building a large-scale “customized AI data center” on a property operated by energy technology company Lancium outside Abilene, Texas. Crusoe and Rancium said in a joint statement at the time that the project was “supported by billions of dollars of investment,” without disclosing the backers.
Building and operating the AI technology requires large amounts of electricity, and the companies said the project could be powered by renewable sources such as nearby solar farms, according to Rancium CEO Michael McNamara. He said it would supply electricity. Providing green energy at the lowest possible cost. ” Crusoe said he would own and develop the facility.
It’s unclear when or how this project became the first phase of the Stargate investment unveiled by President Trump. Oracle co-founder Larry Ellison said Tuesday that the Abilene project is the first of about 10 data center buildings currently under construction, and that number could grow to 20. .
Where is Microsoft?
Although Microsoft was not present at President Trump’s press conference on Tuesday, the company has backed OpenAI with billions of dollars in investments over the years and has used its data centers to develop the models behind ChatGPT and other generative AI tools. It has been made available for use in construction.
Microsoft announced this week that it is also investing in the Stargate project, but that the partnership with OpenAI will “evolve” to allow OpenAI to “build additional capabilities primarily for model research and training.” issued a statement.
Asked about Musk’s comments about the Stargate deal in an interview with CNBC at the World Economic Forum in Davos, Switzerland, on Wednesday, Microsoft CEO Satya Nadella said his company has 800 plans to build its global AI infrastructure. He said he is focusing on a billion-dollar plan, of which $50 billion has been spent. In the US.
“Look, all I know is that it’s okay to have $80 billion,” Nadella said with a laugh.