Elon Musk and Sam Altman Clash over Stargate AI Project amid Trump’s $500 Billion Initiative

CGC News Reporter January 23, 2025

In a growing feud between tech billionaires, Elon Musk and OpenAI CEO Sam Altman are at odds over the ambitious Stargate artificial intelligence infrastructure project, which was touted by President Donald Trump as a bold step forward for the U.S. economy. Trump unveiled plans for a new venture involving OpenAI, Oracle, and SoftBank, with a potential $500 billion investment aimed at developing AI technology and supporting the creation of critical data centers and energy infrastructure.

The project, which Trump described as a “resounding declaration of confidence in America’s potential,” promises an initial private investment of $100 billion, potentially growing to five times that sum. However, Musk, a close Trump adviser and advocate for cost-cutting measures in government spending, has questioned the financial viability of the endeavor. On his social media platform, X, Musk alleged that SoftBank had less than $10 billion secured for the project, casting doubt on its future.

Altman swiftly fired back, stating that Musk was “wrong, as you surely know,” and extended an invitation to Musk to visit the first Stargate construction site in Texas, where development is already underway. The dispute marks the latest chapter in a growing rivalry between Musk and Altman, who previously clashed over OpenAI’s direction. The Stargate project now faces growing scrutiny as the two tech titans continue to challenge each other’s influence and vision for the future of AI.