Musk denies Trump’s investment announcement in Stargate AI

Elon Musk claimed late Tuesday that tech giants OpenAI, Oracle and Softbank don’t have enough money to fulfill their high-profile pledge to invest $500 billion in America’s artificial intelligence infrastructure.

The Tesla and SpaceX CEO made the comment just hours after President Donald Trump unveiled the massive project at the White House on his first full day in office.

“They don’t really have any money,” Musk wrote in response to a post from OpenAI on its social platform X about the new venture, dubbed Project Stargate.

“SoftBank has secured well under $10 billion. I have this on good authority,” Musk added in a later post.

By far Trump’s biggest backer in the 2024 election, Musk is currently presiding over a major White House government efficiency effort.

On Wednesday morning, OpenAI CEO Sam Altman responded directly to Musk.

“I sincerely respect your accomplishments and believe you are the most inspiring entrepreneur of our time,” Altman wrote on X.

Yet Musk’s claim about Softbank’s liquidity was “false, as I’m sure you know,” Altman wrote in a follow-up post.

“I realize that what is great for the country is not always what is optimal for your businesses, but in your new role, I hope you will prioritize the American flag emoji,” he said. -he added.

OpenAI and Oracle did not immediately respond to CNBC’s requests for comment on Musk’s claim. Softbank declined to comment.

Musk’s message about Softbank was “far from reality,” according to a person familiar with the AI ​​project, who was granted anonymity to discuss the situation.

“There is no doubt” that Musk’s difficult relationship with Altman was the catalyst for his Stargate posts, the person added.

Musk’s comments undercut Trump’s announcement Tuesday afternoon that Stargate will “invest at least $500 billion” and create “more than 100,000 American jobs almost immediately.”

“I think it will be something very special. It will lead to something that could be the greatest of all,” Trump said.

As he spoke, Trump was flanked by Altman, Oracle co-founder Larry Ellison and Softbank CEO Masayoshi Son.

Ellison said at that event that 10 data centers, each 500,000 square feet in size, were already under construction in Abilene, Texas, and 10 more were in the works.

Musk, who heads Trump’s new government effectiveness advisory council, DOGE, has a strained relationship with Altman.

In March, Musk and his AI startup, xAI, sued OpenAI, alleging breach of contract. Musk later dropped that suit and in August sued Altman in federal court.

Altman’s response on X matches the tone he has previously taken toward Musk in public.

“I may be wrong, but I firmly believe that Elon will do the right thing,” Altman said in December, when asked if he was concerned about how Musk might exert his influence at the White House.

OpenAI said in Tuesday’s X statement that Stargate “will begin deploying $100 billion immediately.”

Son will be chairman of the new company, whose initial backers include SoftBank, OpenAI, Oracle and UAE-based lender MGX, according to the post.

News of the infrastructure initiative sent shares of Oracle up 7% on Tuesday.

OpenAI’s message is also listed Microsoft as one of its primary initial technology partners in Stargate. The company announced earlier in January that it plans to invest $80 billion over the next fiscal year in AI-enabled data centers.

Asked Wednesday on CNBC’s “Squawk Box” about Stargate, Microsoft CEO Satya Nadella said, “I’m not particularly into the details of what they’re investing in.”

Asked about Musk’s posts questioning Stargate’s funding, Nadella responded: “Look, all I know is I’m good for my $80 billion.”