Musk Slams Trump's $500 Billion Stargate AI Project As Huge Scam

A fresh conflict has ignited between Tesla CEO Elon Musk and OpenAI’s chief, Sam Altman, over a newly unveiled artificial intelligence initiative called Stargate. The ambitious $500 billion project, championed by former President Donald Trump, seeks to revolutionise AI infrastructure by building advanced data centers and power facilities across the United States.

Unveiled as a joint effort involving OpenAI, Oracle, and SoftBank, Stargate’s initial phase comes with a private investment of $100 billion. Trump hailed the venture as a testament to America’s innovative strength, describing it as a game-changer for the country’s AI ecosystem.

However, Musk voiced scepticism over the funding claims, suggesting the financial backing is far from secure. He further alleged that SoftBank’s secured investment falls significantly short of expectations.

Sam Altman, defending the project, dismissed Musk’s remarks as baseless. In a pointed response, Altman invited Musk to visit Stargate’s first construction site in Texas, emphasising the project’s potential benefits for national progress.

The public spat is rooted in a long-standing rivalry between the two tech magnates, dating back to their time at OpenAI. Musk, a co-founder and former board member of OpenAI, has repeatedly criticised the organisation for abandoning its original non-profit goals.

He is currently embroiled in a lawsuit to halt OpenAI’s transition into a for-profit entity, with a hearing slated for February. Adding to the competitive tension, Musk launched his own AI company, xAI, last year, arguing that OpenAI and its key ally, Microsoft, enjoy an unfair market advantage.

Meanwhile, Microsoft’s involvement in Stargate remains unclear. While the tech giant has reaffirmed its ongoing investment in AI infrastructure, CEO Satya Nadella highlighted Microsoft’s independent $80 billion AI development plan, sidestepping questions about Musk’s criticisms.

The Stargate initiative also carries intrigue regarding its origins. Initial reports in early 2024 described a Texas-based AI data center project led by Crusoe Energy Systems and Lancium, with undisclosed investors.

How this effort evolved into the Stargate project announced by Trump remains uncertain. Oracle co-founder Larry Ellison has confirmed plans for as many as 20 data centers under the Stargate banner, with the Texas site serving as the first milestone.

While the project aims to cement America’s leadership in artificial intelligence, the public clash between Musk and Altman underscores the fractious dynamics shaping the industry’s future. As the tech world watches the drama unfold, one thing is certain – the future of AI will be shaped by the actions of these two tech giants.