In a significant move, the Stargate project has been announced, aiming to bolster the US AI infrastructure. This initiative involves OpenAI, alongside technology partners like Softbank and Oracle, planning to invest a staggering $500 billion. The project was introduced by US President Trump on his first day in office.
The Stargate project is expected to create 100,000 jobs in the United States. According to OpenAI, the companies involved are set to invest $100 billion immediately into this venture. However, questions arise about the financial capability of these companies to support such a massive project.
Elon Musk has expressed skepticism about the financial readiness of these companies. He commented that they currently do not have the funds required for the project. Musk specifically pointed out that Softbank has managed to raise only $10 billion, according to reliable sources.
OpenAI’s response to Musk’s comment was unusual. CEO Sam Altman replied, “I sincerely respect your achievements and think you are the most inspiring entrepreneur of our time,” without addressing Musk’s concerns directly.
The relationship between Musk and OpenAI is strained. Musk, who leads a council called Doge under Trump, has a tense relationship with Altman. Musk, who has launched his own AI company, xAI, has sued OpenAI and Altman twice in 2024. Musk accuses OpenAI of deviating from its non-profit orientation, as initially agreed upon when he was an early investor. He also accuses Altman of greed, stating that the deceit and betrayal have reached Shakespearean proportions.
Are Musk’s comments on social media a reflection of his personal issues with Altman? Or is Musk, known for his efficiency, genuinely concerned about the financial management of the $500 billion project?
Despite these challenges, the project is unlikely to run out of funds. OpenAI has Microsoft as a major technology partner and investor. The software giant announced in January 2025 that it plans to invest $80 billion in AI data centers. Microsoft’s CEO, Satya Nadella, stated that while he is not aware of all the investment details of the other partners, he has $80 billion ready for the project.
The Stargate project represents a significant step towards advancing AI capabilities in the US, with the potential to create numerous jobs and drive technological progress. However, the financial execution of such a large-scale initiative remains a critical concern. As the project unfolds, the involvement of major players like Microsoft could play a crucial role in its success.