Elon Musk publicly trashes Trump-backed Stargate AI project, clashes with OpenAI CEO Sam Altman

A dispute between tech billionaires Elon Musk and OpenAI CEO Sam Altman has erupted over Stargate, a new artificial intelligence infrastructure project. President Trump announced the project on Tuesday, describing it as a joint venture between OpenAI, Oracle, and SoftBank with a potential investment of up to $500 billion. Stargate aims to construct data centers and power generation for AI development.

Trump called the project, with its initial $100 billion private investment, “a resounding declaration of confidence in America's potential.” However, Musk, a Trump advisor involved in a government cost-cutting initiative, publicly questioned the project's funding. “They don't actually have the money,” Musk posted on X. “SoftBank has well under USD 10B secured. I have that on good authority.”

Altman countered Musk’s claims, stating Musk was “wrong, as you surely know” and inviting him to visit the project’s first site under construction in Texas. “(T)his 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 wrote.


The Stargate disagreement stems from a long-standing feud between Musk and Altman originating from their time at OpenAI, which both helped establish. Musk, a former OpenAI investor and board member, sued the company last year, arguing it had abandoned its non-profit mission. He recently expanded his lawsuit, seeking to halt OpenAI's transition to a for-profit entity. A hearing is scheduled for early February in California.

Musk, who also heads Tesla, SpaceX, and X, launched his own AI company, xAI, last year. He claims OpenAI and its partner Microsoft have an unfair competitive advantage.

The Information first reported on the OpenAI data center project, then called Stargate, in March 2024. Last July, Crusoe Energy Systems and Lancium announced a “multibillion-dollar” AI data center project in Texas without naming investors. It is unclear how this project became part of the Stargate initiative announced by Trump.

While Oracle co-founder Larry Ellison stated the Texas project is the first of potentially 20 data centers, Microsoft, a significant OpenAI partner, was absent from Trump’s announcement. Microsoft confirmed its investment in Stargate, adding its partnership with OpenAI will “evolve.” When asked about Musk's comments, Microsoft CEO Satya Nadella emphasized his company's own $80 billion AI infrastructure plan, stating, “Look, all I know is, I'm good for my USD 80 billion.”