Elon Musk reacts to SoftBank-OpenAI’s $500 billion AI project, says ‘they don’t have the money’

Tesla and SpaceX CEO Elon Musk reacted to OpenAI and SoftBank Group’s announcement of 'The Stargate Project,' claiming they lacked the funds for such an initiative. The project is a $500 billion initiative to build AI infrastructure across the US, with Masayoshi Son taking the role of chairman.

“They don’t actually have the money,” he said in a post on X.



SoftBank, a major investment firm, has less than $10 billion in secured funding available, Musk added.

The investment brings an alliance of major tech companies, with SoftBank and OpenAI as the lead partners. SoftBank will oversee the financials, while OpenAI will handle operations. Additionally, Oracle and MGX have joined as equity investors.

Arm, Microsoft, Nvidia and Oracle will serve as key technology partners. Initial construction is underway in Texas, with plans to expand to multiple sites across the country.

The project maintains OpenAI's ongoing partnership with Microsoft, which will expand its use of Azure cloud services. At the same time, Nvidia will deepen its long-term collaboration with OpenAI, a relationship that began in 2016.

"This investment will re-industrialise America…But more importantly, it gives OpenAI the computing power it needs for AGI research,” said OpenAI in a statement.

The companies made the announcement at a press conference at the White House, where president Donald Trump discussed plans for investing in US infrastructure.