Elon Musk and Sam Altman spar over Trump’s Stargate AI project

A public feud erupts between Elon Musk and OpenAI CEO Sam Altman regarding Trump's Stargate AI initiative, questioning investment credibility and national interest

Washington: Elon Musk is clashing with OpenAI CEO Sam Altman over the Stargate artificial intelligence infrastructure project touted by President Donald Trump, the latest in a feud between the two tech billionaires that started on OpenAI’s board and is now testing Musk’s influence with the new President.

Trump on Tuesday had talked up a joint venture investing up to $500 billion through a new partnership formed by OpenAI, the maker of ChatGPT, alongside Oracle and SoftBank.

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The new entity, Stargate, is already starting to build out data centres and the electricity generation needed for the further development of fast-evolving AI technology.

Trump declared it “a resounding declaration of confidence in America’s potential” under his new administration, with an initial private investment of $100 billion that could reach five times that sum. But Musk, a close Trump adviser who helped bankroll his campaign and now leads a government cost-cutting initiative, questioned the value of the investment hours later. “They don’t actually have the money,” Musk wrote on his social platform X.

“SoftBank has well under $10B secured. I have that on good authority.” Altman responded Wednesday to say Musk was “wrong, as you surely know” and inviting Musk to come visit the first site in Texas that is already under construction. “(T)his 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,” Altman wrote, using a US flag emoji to represent America.

Behind the feud

The public clash over Stargate is part of a years-long dispute between Musk and Altman that began with a boardroom rivalry over who should run OpenAI, which both men helped found.

Musk, an early OpenAI investor and board member, sued the artificial intelligence company last year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits.

Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business more fully. A hearing is set for February in a California federal court.

The world’s richest man, whose companies include Tesla, SpaceX and X, last year started his own rival AI company, xAI, that is building its own big data center in Memphis, Tennessee.

Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT.

When did Stargate start?
Tech news outlet The Information first reported on an OpenAI data center project called Stargate in March 2024, indicating that it’s been in the works long before Trump announced it.

Another company — Crusoe Energy Systems — announced in July it was building a large and “specially designed AI data center” at the northwest edge of Abilene, Texas at a site run by energy technology company Lancium.

Crusoe and Lancium said in a joint statement at the time that the project was “supported by a multibillion-dollar investment” but didn’t disclose its backers.