As OpenAI launches $500 billion ‘Stargate’ project, critics express skepticism

However, shortly after this news was announced on Tuesday, OpenAI CEO Sam Altman wrote on X that Microsoft and OpenAI were not parting ways, saying it was a “very important partnership and huge, for a long time to come.”

Critics take aim, Musk expresses skepticism

Some frequent OpenAI critics, like tech writer Ed Zitron, have already begun to question whether Stargate can provide the $100 billion in initial funding, much less the $500 billion they hope to raise over time. time.

After The Information reported that OpenAI and SoftBank had each committed $19 billion to the new venture, Zitron wrote on BlueSky, referring to OpenAI’s $5 billion in losses in 2024: “Oh my God, it This is completely ridiculous. OpenAI will raise an additional $19 billion in debt. /actions? This company loses more than 5 billion dollars per year! So what, they raise $19 billion for Stargate, and then another $10 billion just to survive? »

Shortly after Stargate’s announcement on Tuesday, Trump ally and frequent Altman foe Elon Musk immediately attacked the Stargate plan on X, writing, “They don’t actually have the money,” and following up with a claim we cannot substantiate, saying “SoftBank has secured well under $10 billion. I have this on good authority.”

Musk’s criticisms have complex implications given his very close ties to Trump, his history of litigation against OpenAI (which he co-founded and then left), and his own goals with his company xAI.

On Wednesday morning, Altman responded on X that he “genuinely respects” Musk’s accomplishments and said he believes Musk is “the most inspiring entrepreneur of our time.”

Altman also responded to Musk’s claims that he did not have the requested amounts, saying: “That’s false, as I’m sure you know. Want to come visit the first site already in progress? That’s great for the country I realize that what is great for the country is not always what is optimal for your business, but in your new role I hope you prioritize 🇺🇸. .”

This article was updated on January 23, 2025 to include details on OpenAI’s 2024 “Stargate” plan with Microsoft. It also adds Ed Zitron’s criticism and more information about Sam Altman’s response to Musk’s criticism.