Elon Musk has expressed skepticism over former US President Donald Trump’s ambitious $500 billion AI infrastructure project, known as “Stargate,” announced during his first full day back in the White House. Musk, who has been a prominent ally of Trump and a key figure in the administration’s tech initiatives, publicly cast doubt on the availability of the promised funds.
On his platform, X, Musk claimed that the main investors in the project—SoftBank, OpenAI, and Oracle—do not have the financial backing to commit such a large investment. “SoftBank has well under $10B secured. I have that on good authority,” Musk wrote, directly challenging the project’s financial foundation.
Trump’s Stargate Announcement
On Tuesday, Trump unveiled the Stargate initiative, stating that it would “invest $500 billion, at least, in AI infrastructure in the United States.” The initiative, led by Japanese tech giant SoftBank and OpenAI, is expected to fund AI research, infrastructure, and development over the next four years, with an initial $100 billion commitment.
Musk vs. OpenAI and SoftBank
Musk’s criticism adds to his ongoing feud with OpenAI, the company behind ChatGPT, which he co-founded but departed in 2018. Since then, Musk has filed several lawsuits against OpenAI and openly criticized its leadership, including CEO Sam Altman, who was present at the White House announcement.
SoftBank, a key player in the Stargate project, has approximately $30 billion in cash reserves, while Oracle, another participant, reportedly holds $11 billion in cash and securities, according to the Wall Street Journal. These figures fall far short of the proposed $500 billion total investment, supporting Musk’s claims that the funding is not fully secured.
Feud Implications
The clash between Musk and Trump is a rare departure from their usual alignment. Musk’s significant financial contributions—amounting to $270 million—to Trump’s recent campaign have made him a central figure in the administration’s tech and economic strategies. However, Musk’s skepticism about the Stargate project suggests tensions could emerge if disagreements over major initiatives persist.
Challenges Ahead
While the Stargate project aims to position the United States as a global leader in AI, questions about its funding could undermine its credibility. Musk’s statements highlight potential financial shortfalls, casting doubt on the feasibility of meeting the project’s ambitious goals.
Observers will watch closely to see how the administration addresses these concerns and whether Musk’s involvement in future AI projects will be affected by his criticism.
