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Stargate AI Project Faces Criticism as Elon Musk Challenges Its $500B Budget
Last Updated: January 23, 2025
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Key Takeaways
- Elon Musk questions the funding of the $500 billion Stargate AI project, citing doubts about SoftBank’s financial commitment;
- OpenAI CEO Sam Altman dismisses Musk’s claims, emphasizing the project’s national importance and ongoing progress in Texas;
- The Stargate initiative aims to build US AI infrastructure over four years, with $100 billion planned for immediate use.
Elon Musk has raised concerns about the $500 billion Stargate project, a new AI infrastructure initiative backed by President Donald Trump, SoftBank, OpenAI, and Oracle.
This project, announced after the new administration took office, aims to expand artificial intelligence (AI) infrastructure across the US within the next four years, with $100 billion promised for immediate deployment.
Supporters claim it will bring economic benefits, but Musk has expressed doubts about the actual funding.
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Musk, who once co-founded OpenAI before leaving in 2018, has since become one of the company's most vocal critics, even filing lawsuits to oppose its current direction.
In a January 22 post on X, Musk claimed:
They don’t actually have the money.
He later sent another post, pointing out that SoftBank has secured far less than the reported $10 billion required to start the initiative. He said, "SoftBank has well under $10B secured. I have that on good authority".
Sam Altman, OpenAI’s CEO, disagreed with Musk’s statements and invited him to visit a Texas site where initial work is already underway. He stated:
Wrong, as you surely know. Want to come visit the first site already under way?
Altman added, "This is great for the country". He emphasized the national importance of the initiative, suggesting it may not align with Musk’s personal business interests but is vital for the country’s growth.
Meanwhile, the Department of Government Efficiency (DOGE), led by Musk, recently faced a lawsuit from National Security Counselors, a public-interest law firm. What happened? Read the full story.
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