Says Stargate AI program lacks funding

Elon Musk claimed Tuesday night that tech giants OpenAI, Oracle and SoftBank don’t have enough money to fulfill their high-profile pledge to invest $500 billion in U.S. artificial intelligence infrastructure.

The CEOs of Tesla and SpaceX made the comments just hours after President Donald Trump announced the massive project at the White House on his first day in office.

“They don’t actually have the money,” Musk wrote in response to an OpenAI post on social platform X about a new venture called the Stargate Project.

“SoftBank has secured well under $10 billion. I have it on good authority,” Musk added in a later post.

Mr. Musk, by far Mr. Trump’s biggest financial backer in the 2024 election, currently chairs a major White House government efficiency effort.

On Wednesday morning, OpenAI CEO Sam Altman responded directly to Musk.

“I deeply admire your work and consider you to be the most inspiring entrepreneur of our time,” Altman wrote about X.

But Musk’s claims about SoftBank’s liquidity were “just so you know, wrong,” Altman wrote in a follow-up post.

“We understand that what’s great for the country isn’t necessarily what’s best for your company, but we hope you’ll put the (Stars and Stripes emoji) first in your new role,” he said. added.

OpenAI and Oracle did not immediately respond to CNBC’s request for comment on Musk’s claims. SoftBank declined to comment.

A person familiar with the AI ​​project who was authorized to speak anonymously about the situation said Musk’s post about SoftBank was “off base.”

The person added that there is “no question” that Musk and Altman’s rocky relationship prompted the Stargate post.

Musk’s comments undermined President Trump’s announcement Tuesday afternoon that Stargate would invest “at least $500 billion” and create “more than 100,000 American jobs almost immediately.”

“I think this is going to be something very special. It’s going to be the biggest thing ever,” President Trump said.

During the speech, Trump was flanked by Altman, Oracle co-founder Larry Ellison, and SoftBank CEO Masayoshi Son.

Ellison said at the event that 10 500,000-square-foot data centers are already under construction in Abilene, Texas, and 10 more are in the works.

CNBC also revealed that President Trump spoke by phone with Altman last week. Their “long” conversation focused on AI’s potential to improve people’s lives and the importance of building that infrastructure in the United States rather than China.

Mr. Musk, who heads President Trump’s new Government Efficiency Advisory Council, DOGE, has a strained relationship with Mr. Altman.

In March, Musk and his AI startup xAI sued OpenAI, alleging breach of contract. Musk later dropped the suit and sued Altman in federal court in August.

Mr. Altman’s response to X is consistent with the tone he has previously taken toward Mr. Musk in public.

Asked in December if he was concerned about how Musk would wield influence in the White House, Altman said: “I may be wrong, but I think Elon I have strong faith that he will do the right thing.”

OpenAI said in a Tuesday statement on X that Stargate will “immediately begin a $100 billion rollout.”

According to the post, Son will serve as chairman of the new company, with initial investors including SoftBank, Open AI, Oracle, and UAE-based financial company MGX.

Oracle stock rose 7% on Tuesday on news of the infrastructure initiative.

Posts from OpenAI are also included. microsoft As one of Stargate’s key early technology partners. The company announced in early January that it plans to invest $80 billion in AI-enabled data centers next year.

“I don’t really know what they’re investing in,” Microsoft CEO Satya Nadella said Wednesday on CNBC’s “Squawk Box” when asked about Stargate.

Asked about Musk’s post questioning Stargate funding, Nadella said, “Look, all I know is that $80 billion is OK.”

— CNBC’s Kate Rooney contributed reporting