Elon Musk bashes the $500 billion AI project Trump announced, claiming its backers don’t ‘have the money’

Elon Musk has publicly criticized President Donald Trump's newly announced $500 billion artificial intelligence project, known as Stargate, questioning the financial viability of the initiative. This project, which involves major tech firms such as OpenAI, Oracle, and SoftBank, aims to develop AI infrastructure in the United States and is touted as the largest of its kind in history.

Musk's skepticism emerged shortly after Trump's announcement during his first full day in office. He claimed that the backers of the Stargate project do not possess the necessary funds to fulfill their ambitious promises. In a post on his social media platform X, Musk stated, "They don't actually have the money," and further asserted that SoftBank has less than $10 billion secured for the endeavor, a claim he insisted was based on reliable information.

The Stargate initiative is expected to kick off with an initial investment of $100 billion, with potential total investments reaching up to $500 billion over four years. It aims to establish data centers across the U.S., thereby creating over 100,000 jobs and enhancing the country's competitive edge in AI technology. Musk's remarks highlight a rare public disagreement between him and Trump, particularly given Musk's significant financial support for Trump's 2024 campaign.

In response to Musk's comments, OpenAI CEO Sam Altman defended the project's financial backing. He refuted Musk's claims about SoftBank's financial status and emphasized the importance of prioritizing national interests over personal business concerns. Altman invited Musk to visit one of the project's sites already under construction, asserting that the Stargate initiative is beneficial for the country.

This exchange underscores ongoing tensions between Musk and Altman, particularly since Musk was one of OpenAI's co-founders before stepping away from the organization in 2018. The dispute reflects broader challenges within the tech community regarding funding and collaboration in advancing AI technologies.