Elon Musk and OpenAI CEO Sam Altman are clashing over the Stargate AI infrastructure project, just hours after President Donald Trump announced the $500bn initiative. This latest dispute adds to the ongoing tension between the two tech billionaires, rooted in their past disagreements over OpenAI’s leadership.
Trump recently promoted Stargate, a joint venture between OpenAI, Oracle, and SoftBank, aiming to build data centres and generate the energy required for the growth of AI technology. With an initial $100bn investment, the project could reach $500bn, as it begins to establish key infrastructure across the US, including Texas.
Musk, a close advisor to Trump, raised concerns over the project’s financial backing, questioning the authenticity of the investments. On his platform X, Musk stated that SoftBank has secured less than $10bn, a claim he said he had confirmed through reliable sources.
Altman swiftly responded, defending the project and Musk’s skepticism, stating that Musk was wrong and inviting him to visit the Texas construction site. Altman expressed that while Musk may have concerns for his companies, the Stargate project is beneficial for the nation.
This public disagreement is part of a long-standing feud between Musk and Altman, which began with a leadership struggle at OpenAI, an organization they both helped establish. Musk, who was an early investor, sued OpenAI last year, alleging it had deviated from its original mission of being a nonprofit focused on public good.
Musk has since intensified his battle, demanding that OpenAI halt its transformation into a fully profit-driven entity. His new AI venture, xAI, is constructing its own data centre in Memphis, Tennessee, and Musk claims it faces unfair competition from OpenAI and its partner Microsoft, who supply the substantial computing power needed to operate AI systems like ChatGPT.
Stargate’s development traces back to earlier reports by The Information in March 2024, which detailed OpenAI’s data centre project. Additionally, Crusoe Energy Systems, in collaboration with Lancium, announced its own AI data centre outside Abilene, Texas, back in July 2024, which is now part of the larger Stargate initiative.
The Abilene site, powered by renewable energy from nearby solar farms, is already under construction and is intended to provide green energy at the lowest cost. Oracle’s Larry Ellison confirmed that this project is the first of up to 20 planned data centre locations for Stargate.
Interestingly, Microsoft, which has been a longtime supporter of OpenAI, was notably absent from Trump’s announcement. However, Microsoft confirmed its involvement in Stargate, stating its partnership with OpenAI will evolve to enable further research and model training capacity.
When questioned about Musk’s comments, Microsoft CEO Satya Nadella responded, emphasizing his company’s $80bn global AI infrastructure plan, with $50bn directed toward US investments. He confidently stated, “I’m good for my $80bn,” in a light-hearted remark.
