A public dispute has erupted between tech magnates Elon Musk and Sam Altman following the announcement of the $500 billion “Stargate” AI infrastructure project, endorsed by President Donald Trump. The initiative, a collaboration between OpenAI, Oracle, and SoftBank, aims to establish advanced data centers across the United States, with a significant site planned in Abilene, Texas.
President Trump introduced the Stargate project as a testament to America’s technological potential, highlighting an initial $100 billion investment. However, Elon Musk, co-founder of OpenAI and CEO of Tesla and xAI, has publicly questioned the project’s financial viability. Musk specifically cast doubt on SoftBank’s ability to fulfill its funding commitments, suggesting that the Japanese conglomerate lacks the necessary capital.
In response, Sam Altman, CEO of OpenAI, defended the project’s financial foundation and progress. Altman refuted Musk’s claims and extended an invitation for him to visit the construction site in Texas to witness the developments firsthand. Altman also expressed support for President Trump’s policies, indicating a strengthened relationship between OpenAI and the current administration.
This confrontation is the latest episode in a longstanding rivalry between Musk and Altman. Both were instrumental in founding OpenAI in 2015, envisioning it as a nonprofit dedicated to advancing artificial intelligence for the benefit of humanity. However, Musk departed from the organization in 2018 due to disagreements over its direction and potential conflicts with his ventures at Tesla. Following his departure, OpenAI transitioned to a “capped” for-profit model, a move that Musk has consistently criticized as a deviation from its original mission.
In February 2024, Musk filed a lawsuit against OpenAI, Altman, and President Greg Brockman, alleging that the company prioritized profits over its commitment to public welfare. The lawsuit highlighted OpenAI’s partnership with Microsoft, which provides substantial computing resources, as evidence of its shift towards commercialization. Although Musk withdrew the lawsuit in June 2024, he reinstated it in August, further intensifying the legal battle.
Amid this dispute, Musk is advancing his own artificial intelligence endeavors through his company xAI, which is constructing a data center in Memphis, Tennessee. This development positions xAI in direct competition with OpenAI, adding another layer to the ongoing rivalry between Musk and Altman.
The Stargate project has also attracted skepticism from other technology leaders regarding its financial and operational transparency. Despite these concerns, the initiative is moving forward, with construction having commenced nine months ago. Oracle co-founder Larry Ellison has announced plans for multiple data centers as part of the project, underscoring its ambitious scope.
This high-profile clash between Musk and Altman not only highlights personal animosities but also raises broader questions about the direction of artificial intelligence development in the United States. As both leaders continue to shape the AI landscape, their interactions will likely influence the industry’s trajectory and its relationship with governmental initiatives.
