In a bold declaration of skepticism, Elon Musk has cast significant doubt over the ambitious $500 billion artificial intelligence initiative championed by former President Donald Trump. Announced during Trump’s inaugural full day back in the White House, the project seeks to establish a transformative AI infrastructure in collaboration with Japan’s SoftBank and OpenAI, the organization behind ChatGPT.
Named “Stargate,” the venture is envisioned as a cornerstone for advancing AI in the United States. Trump lauded the project on Tuesday, asserting that it would inject at least half a trillion dollars into building an AI ecosystem across the nation. SoftBank and OpenAI were highlighted as key stakeholders in this monumental undertaking.
However, Musk, the enigmatic Tesla CEO and frequent provocateur, took to his social media platform X to pour cold water on the feasibility of the plan. He claimed that the primary financiers lacked the requisite capital to back such a colossal venture.
“SoftBank doesn’t even have $10 billion secured,” Musk alleged, citing what he described as credible sources. His comments were accompanied by another dig, implying that the project’s financial framework was built on shaky ground.
The outspoken entrepreneur’s criticisms appeared to contain a personal edge, particularly towards OpenAI. Once a founding figure in the organization, Musk parted ways in 2018, and the relationship has since devolved into a public feud. Legal entanglements have ensued, with Musk initiating multiple lawsuits against the startup, which, despite being a leading force in AI innovation, faces immense operational costs and struggles to achieve profitability.
Financial disclosures from other stakeholders have further complicated the narrative. According to *The Wall Street Journal*, Oracle, a prominent cloud computing giant involved in the Stargate project, holds approximately $11 billion in liquid assets, while SoftBank reportedly has around $30 billion in reserve. These figures raise concerns about whether the project’s ambitious funding goals—committing $100 billion initially, with plans to scale up to $500 billion over four years—are grounded in financial reality.
This public clash underscores the complexities of achieving large-scale AI advancement and the intricate web of rivalries within the tech ecosystem. As the Stargate initiative moves forward, it faces not only logistical and financial hurdles but also the intense scrutiny of industry leaders like Musk, whose influence could shape the trajectory of the project.
Whether this endeavor will redefine the AI landscape or falter under the weight of its ambition remains an open question, one that the world will undoubtedly watch closely.
