Major tech moguls had strong words for each other on Wednesday, lashing out at rivals over a monumental pledge to invest in artificial intelligence (AI) that had been announced by Donald Trump just the day before.
Trump unveiled Stargate, a $500 billion project that would be funded by a partnership between OpenAI, Oracle, and Softbank, on Tuesday. The announcement was made with the leaders of these companies by Trump’s side: Sam Altman, Larry Ellison, and Masayoshi Son, the latter slated to chair the project. All three are multibillionaires. A notable absence from the photo op was a representative from MGX, Abu Dhabi’s state AI fund, which is also a principal investor in the project.
The Stargate initiative is aimed at building crucial data centers and computing infrastructure for the ongoing development of artificial intelligence. While the headline investment figure is substantial, industry estimates had already indicated that AI development at this scale would require such an investment.
However, the announcement was not without controversy. Elon Musk, the CEO of Tesla, SpaceX, and xAI, as well as the world’s wealthiest individual, did not participate in the event, despite his strong ties to Trump. Musk immediately voiced his skepticism, dismissing the project as financially impractical.
In a post on X (formerly Twitter), Musk called the $100 billion “immediate deployment” figure touted by OpenAI a fabrication, asserting that Softbank had secured far less funding than claimed, “well under $10 billion.” Musk, who has a reputation for regularly posting controversial statements, went further to mock the project’s financial claims, suggesting that OpenAI used dubious methods to arrive at the $500 billion figure.
Despite Musk’s dismissive comments, Sam Altman, the CEO of OpenAI, attempted to respond diplomatically at first, praising Musk’s entrepreneurial achievements. However, Altman later took a jab at Musk’s criticism of Softbank’s funding, suggesting that Musk might not prioritize national interests over his personal business interests. Altman’s response highlighted the tension between the two, stemming from a long-standing feud between them. Musk and Altman co-founded OpenAI in 2015, but their relationship soured as the company transitioned to a for-profit model, leading Musk to sue OpenAI multiple times.
While Musk and Altman were embroiled in this spat, Microsoft’s CEO, Satya Nadella, offered a more composed perspective. In an interview with CNBC, Nadella commented lightheartedly, “All I know is, I’m good for my $80 billion. I’m going to spend $80 billion building out Azure,” referring to Microsoft’s cloud computing business.
The project continues to stir debate among the world’s tech leaders, as the future of AI investment and development becomes increasingly entwined with the financial and political ambitions of tech moguls. While the companies involved in Stargate push forward with their vision, the controversy surrounding its funding and execution reveals the competitive and often contentious landscape of the AI industry.
The lack of participation by Musk, his pointed criticisms, and the visible tensions between key industry figures have made Stargate a flashpoint in the ongoing discourse around AI. As companies rush to capitalize on the potential of AI, this clash underscores the complexity and challenges that lie ahead in realizing such large-scale projects.
