Elon Musk and Sam Altman Clash Over Stargate Project
In a public spat on X, billionaire entrepreneur Elon Musk and OpenAI CEO Sam Altman are at odds over Stargate, a massive infrastructure initiative aimed at building data centers for OpenAI across the United States. Announced at a White House press conference on Tuesday, Stargate is set to channel up to $500 billion from investors like SoftBank and the Middle Eastern AI fund MGX into these data centers, crucial for powering OpenAI’s AI workloads.
The Financial Dispute
Initial commitments to Stargate amount to $100 billion, with some funds already allocated to a data center under construction in Abilene, Texas. However, Musk has raised doubts about the financial backing of Stargate. “They don’t actually have the money,” Musk wrote in a series of posts on X. “SoftBank has well under $10 billion secured. I have that on good authority.”
“SoftBank has well under $10B secured. I have that on good authority.”
— Elon Musk
Rivalry Between Titans
Musk is not just an observer in this scenario; he operates xAI, a rival AI company currently embroiled in a lawsuit against OpenAI. The lawsuit accuses OpenAI of anticompetitive behavior, alleging it discourages investors from supporting competing AI ventures.
Altman responded robustly to Musk’s claims on Wednesday through an X post, dismissing the allegations regarding SoftBank’s financial capacity. Altman highlighted the national significance of Stargate, suggesting Musk prioritize American interests over corporate ones.
“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.”
— Sam Altman
The Larger Picture
Aside from their corporate rivalry, Musk is leading the Department of Government Efficiency (DOGE), an advisory body proposing substantial cuts to federal agencies. This initiative was formalized by President Donald Trump’s executive order but is facing several legal hurdles.
Musk’s xAI is also seeking infrastructure to support its AI development, having already invested approximately $12 billion in a data center in Memphis, Tennessee. The company might spend billions more on upgrades.
Industry Reactions
During an interview at the World Economic Forum in Davos, Microsoft CEO Satya Nadella refrained from commenting on Musk’s statements. Microsoft is a significant collaborator and investor with OpenAI and has committed to investing a record $80 billion in AI data centers this year.
