President Donald Trump recently announced a major new AI initiative aimed at boosting the United States’ artificial intelligence infrastructure, and Elon Musk is already trying to tear it down—mostly because he’s not part of the project. The initiative, called Stargate, is backed by some of the biggest names in tech, including SoftBank, OpenAI, and Oracle. Together, these companies have pledged $100 billion to launch the project, with plans to grow it to $500 billion over the coming years.
Stargate’s goal is to accelerate the development of AI technology in the U.S., ensuring the country remains competitive in the fast-evolving field. During the announcement, leaders from SoftBank, OpenAI, and Oracle stood alongside Trump, signaling strong backing from both the government and the private sector. These companies will be key players in building AI infrastructure across the nation, from data centers to cutting-edge research.
Sam Altman, the CEO of OpenAI, was also present, emphasizing the importance of collaboration between the government and the tech world to drive AI innovation forward.
But just hours after the announcement, Elon Musk, who’s known to have beef with OpenAI and its direction, took to his social media platform X to question the financial backing of the project. Musk wrote, “They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority.”
Musk’s comment immediately caught attention, especially because of his ongoing rivalry with Sam Altman. Musk has been critical of OpenAI, the company he co-founded but later left, and he’s involved in a lawsuit against the organization. Musk claims OpenAI abandoned its original nonprofit mission by keeping its most advanced AI technology behind a paywall for select clients.
Musk’s remarks about SoftBank’s funding quickly sparked a response from Altman, who fired back on X: “wrong, as you surely know. want to come visit the first site already under way? 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 (America) first.”
A source close to the Stargate project also pushed back on Musk’s claims, saying SoftBank actually has $24.3 billion in cash on hand and is fully capable of taking on more debt if necessary. The source also mentioned that Oracle has $11 billion in cash, OpenAI secured over $10 billion in funding, and MGX has $100 billion in capital commitments.
Even Satya Nadella, CEO of Microsoft, which is working with OpenAI on Stargate, weighed in, saying on CNBC, “all I know is I’m good for my $80 billion.”
Musk’s reaction seems to stem from the fact that he’s not part of Stargate. His own AI ventures, including those with his company X and his involvement with Tesla, are directly competing with the companies behind the project. Whether Musk’s comments are driven by genuine concern or just by rivalry remains unclear, but they’ve certainly added an unexpected layer of drama to what could become a game-changing AI project for the U.S.
