Elon Musk Criticizes Trump’s $500 Billion AI Initiative, Questions Funding Availability
Elon Musk raised concerns Wednesday about a $500 billion AI initiative launched by US President Donald Trump, claiming the promised funding is not actually secured, AFP reported.
Musk’s remarks pointed to a rare divide between him and Trump, despite Musk’s significant support for the new administration, having donated $270 million to Trump’s election campaign.
Trump unveiled the initiative, Stargate, on his first full day in office, with backing from SoftBank, OpenAI, and other tech giants. The project aims to invest up to $500 billion in AI infrastructure in the US.
However, Musk expressed doubts about the project’s financial backing, writing on his social media platform, X, that the main investors “don’t actually have the money.” Musk further claimed, “SoftBank has well under $10B secured,” citing reliable sources.
Musk’s criticism could be a direct jab at OpenAI, the AI startup he co-founded before departing in 2018. Musk and OpenAI CEO Sam Altman have been engaged in a public feud, with Musk filing multiple lawsuits against the company behind ChatGPT.
Altman responded to Musk’s criticism, saying, “Wrong, as you surely know. Want to come visit the first site already under way?” He added that the project is beneficial for the country, even if it may not align with Musk’s business interests.
The Stargate project, which is set to invest an initial $100 billion, aims for up to $500 billion in funding over the next four years. Partners in the initiative include Abu Dhabi’s MGX, Oracle, SoftBank, Arm, Microsoft, and Nvidia.
The project is already constructing a data center in Texas, with additional investments in US data centers and pledges from SoftBank.
Despite Musk’s skepticism, the initiative continues to gather support from global investors.
