Elon Musk lashes out as Trump backs Sam Altman for the world’s largest AI project. A new era of artificial intelligence development has been launched in the United States. A massive AI project, dubbed “Stargate,” has been unveiled at the White House. This initiative brings together three major tech companies. The project aims to build the world’s most advanced AI infrastructure.
The announcement was made at a high-profile press conference. Key figures included Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI founder Sam Altman. President Donald Trump also joined them to launch the initiative.
President Donald Trump described Stargate as “the largest AI infrastructure project in history.” Initial investment is set at $100 billion. The total investment is expected to reach at least $500 billion. The project also aims to generate over 100,000 jobs within the US.
Stargate will establish both physical and virtual resources. These resources will power the next generation of AI. Ellison announced that a massive, one-million-square-foot data center is already under construction in Texas to support the project.
Musk Expresses Skepticism, Reigniting AI Rivalry
Elon Musk, the head of Tesla, SpaceX, and X, was notably absent from the event. Elon Musk lashes out as Trump backs Sam Altman and has publicly questioned the project’s financial viability.
Musk posted on X, casting doubt on the project’s funding. He questioned whether the necessary $500 billion is actually available. He specifically challenged SoftBank’s financial commitment. Musk also engaged with social media users. He hinted at possible tensions between OpenAI and Microsoft.
The situation adds another layer to the ongoing rivalry between Musk and Altman. Musk was a co-founder of OpenAI in 2015 but he left in 2018. The relationship has deteriorated significantly since then. Musk’s own AI venture, xAI, is now a direct competitor to OpenAI. Musk has even filed lawsuits against OpenAI and Altman. He alleges breach of contract and antitrust violations. He claims Altman manipulated him into co-founding OpenAI. He accuses Altman of turning the non-profit into a for-profit entity. He characterized this as a betrayal. OpenAI denies these claims. The company recently transitioned from a non-profit to a for-profit structure. This decision drew considerable criticism.
Altman Thanks Trump, Emphasizes US Leadership in AI
While Elon Musk lashes out as Trump backs Sam Altman, Sam Altman publicly thanked President Donald Trump for his support of Stargate. He called the project “the most important project of this era.” He acknowledged it would not have been possible without his involvement.
The Wall Street Journal reports on the financial resources of Stargate’s partners. Oracle has approximately $11 billion in cash and securities. SoftBank holds around $30 billion. OpenAI is currently operating at a loss. Despite this, the three companies committed to the significant investment figures publicly. They promised $100 billion initially and at least $500 billion over the next four years.
Stargate’s Origins and Development
Reports of an OpenAI data center project called Stargate first surfaced in March 2024. This indicates the project was in development well before the recent public announcement.
Crusoe Energy Systems announced in July that it was building a large AI data center in Abilene, Texas. This project was supported by a multi-billion dollar investment, though the backers were not initially disclosed. The facility was designed to use renewable energy sources.
It is now understood that this Abilene project is the first phase of the Stargate investment. Construction in Abilene began about nine months ago.
