Musk Criticizes Trump-Backed $500 Billion AI Initiative

Elon Musk has raised doubts about a $500 billion artificial intelligence (AI) initiative announced by U.S.

President Donald Trump, claiming that the promised funding might not be fully secured, according to AFP.

Musk’s remarks represent a rare public rift between the world’s richest man and the former president, who have shared a close association in recent years.

Trump unveiled the ambitious AI program, dubbed “Stargate,” on his first full day in office.

The initiative, supported by Japanese conglomerate SoftBank and OpenAI, the creators of ChatGPT, aims to invest heavily in building AI infrastructure across the United States.

“This project will invest $500 billion, at least, in AI infrastructure in the United States,” Trump announced, describing the venture as a cornerstone of his administration’s technology agenda.

Musk Questions Funding Sources

However, Musk took to his social media platform, X, to cast doubt on the financial feasibility of the project. “The main investors don’t actually have the money,” Musk wrote, specifically pointing out SoftBank’s limited liquidity. “SoftBank has well under $10 billion secured. I have that on good authority,” he added.

OpenAI and Musk: A Longstanding Feud

Musk’s critique could be seen as targeting OpenAI, the world’s leading AI startup and one of Stargate’s main partners.

Responding to Musk on X, Altman defended the project, stating, “Wrong, as you surely know. Want to come visit the first site already underway?” Altman also emphasized the project’s importance, adding, “This is great for the country. I realize 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 country first.”

Financial Viability and Stakeholder Involvement

Despite Musk’s concerns, Stargate’s backers include an array of influential players.

According to reports, SoftBank has around $30 billion in cash reserves, while Oracle, another major stakeholder, holds $11 billion in cash and securities.

Other contributors include Abu Dhabi’s AI-focused state fund MGX and tech giants like Microsoft, Nvidia, and SoftBank-owned Arm, which are providing technological support.

The project’s initial phase involves a $100 billion investment, with the goal of scaling up to $500 billion over four years.

Construction of a data center in Texas is already underway, according to the companies involved.

Preceding Investments

Prior to taking office, Trump secured a $20 billion Emirati investment in U.S. data centers, alongside earlier financial commitments from SoftBank.

The Stargate initiative appears to build on these earlier developments, marking a significant push to establish the U.S. as a leader in AI innovation.

The Bigger Picture

As Musk and Altman exchange barbs, the Stargate project’s success remains a critical focus for the AI community and U.S. policymakers.