Musk Questions Financial Viability of Trump's $500 Billion Stargate Project

Elon Musk, the CEO of Tesla Inc, has raised concerns about the financial aspects of President Donald Trump's recently revealed $500 billion Stargate project. Musk's comments come after the initiative was announced on Tuesday as part of efforts to develop a substantial artificial intelligence (AI) infrastructure in the United States.

The Stargate project involves partnerships with major technology companies, including Microsoft Corporation, Oracle Corporation, and SoftBank Group Corp., along with OpenAI. The initiative is intended to bolster the country's AI capabilities significantly.

On Wednesday, Musk took to social media platform X to express his skepticism regarding the project's funding, stating, "They don’t actually have the money" in a direct response to OpenAI's announcement about Stargate. He also claimed that SoftBank has "well under $10B secured," suggesting doubts about the project's initially projected fundraising of $100 billion, with a goal of reaching $500 billion by 2029.

In reaction to Musk's remarks, OpenAI CEO Sam Altman defended the funding in a social media post. Altman claimed that the funding for Stargate is indeed secure and highlighted the project's potential benefits for the nation. He remarked, "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 US first."

The Stargate initiative plans to establish several data centers across the United States, beginning in Abilene, Texas, and is expected to create more than 100,000 jobs in the process. This collaboration among leading tech firms could lead to a significant advancement in the nation’s AI infrastructure.

Earlier reports indicated that both SoftBank and OpenAI have each committed $19 billion towards the Stargate initiative, according to anonymous sources familiar with the discussions.

Musk, Stargate, Funding