A high-profile dispute has unfolded between billionaire entrepreneur Elon Musk and OpenAI CEO Sam Altman over the Trump administration’s $500 billion Stargate AI project. Announced by former US President Donald Trump, the initiative promises to position the United States at the forefront of artificial intelligence innovation but has sparked debate over its funding and feasibility.
Trump heralded Stargate as “a resounding declaration of confidence in America’s potential” during its unveiling, framing it as a landmark infrastructure investment in AI development. The project is slated to be funded through a mix of private and public capital, with an initial $100 billion secured from high-profile investors, including Masayoshi Son of SoftBank, Oracle co-founder Larry Ellison, and Altman himself.
Despite the ambitious vision, Musk, who serves as a key advisor to Trump and spearheads the government’s cost-cutting programme DOGE (Deficit Optimisation and Government Efficiency), expressed scepticism about the funding’s legitimacy. Shortly after OpenAI posted on X (formerly Twitter) about the deployment of the initial $100 billion, Musk dismissed the claim, stating, “They don’t actually have the money.” He further alleged, “SoftBank has well under $10 billion secured. I have that on good authority.”
Altman initially responded with deference, tweeting, “I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time.” However, his tone became sharper in subsequent remarks aimed at Musk’s critiques.
“Wrong, as you surely know,” Altman retorted. “Want to come visit the first site already under way? This is great for the country. I realise 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 [the United States] first.”
Musk, known for his unfiltered social media posts, did not hold back. He retweeted a satirical image of a crack pipe captioned, “Leaked image of the research tool OpenAI used to come up with their $500 billion number for Stargate,” escalating the public clash.
A rare rift with the white house
The fallout is notable not only for its personal stakes but also for its political dimensions. Musk has been one of Trump’s closest advisors in recent years, playing a pivotal role in shaping cost-reduction strategies and innovation policies. His criticism of Stargate represents a rare fracture in his alignment with the administration.
Adding to the drama, Microsoft CEO Satya Nadella, whose company maintains a strategic partnership with OpenAI, weighed in during an interview with CNBC. When asked about the feud, Nadella remarked, “All I know is, I’m good for my $80 billion. I’m going to spend $80 billion building out Azure.” His comments seemed to highlight Microsoft’s confidence in OpenAI’s ambitions, while subtly distancing himself from the controversy.
History of Musk and Altman’s rivalry
The dispute over Stargate has reignited a long-standing rivalry between Musk and Altman. Once close collaborators who co-founded OpenAI, the pair parted ways in 2018 after Musk resigned over disagreements about the organisation’s direction. Musk has since been a vocal critic of OpenAI’s transition from a nonprofit to a for-profit model, accusing it of prioritising financial interests over its founding mission of ensuring AI benefits humanity.
Musk’s grievances have extended to the courts, with a lawsuit accusing OpenAI of abandoning its nonprofit commitments. A federal hearing on the matter is set for February, ensuring their rivalry remains in the spotlight for months to come.
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In the meantime, Musk has channeled his energy into xAI, an AI venture he launched in 2023 to directly compete with OpenAI. He has frequently accused OpenAI and its partner Microsoft of benefiting from disproportionate access to computing resources, creating an uneven playing field.
The stargate vision
The Stargate project, if realised, would be one of the largest AI initiatives in history, promising transformative advancements in sectors such as healthcare, defence, and education. Trump has positioned it as a cornerstone of his vision for American technological supremacy.
Critics, however, have raised questions about the project’s feasibility, given its unprecedented scale and reliance on private investment. Musk’s doubts about the funding underscore broader concerns about whether such a massive initiative can deliver on its promises.
As the feud between Musk and Altman continues to unfold, the Stargate project has become a flashpoint not just for the future of AI but also for the dynamics of power, influence, and innovation in Silicon Valley. Whether this ambitious initiative can transcend its early controversies remains to be seen.
