Musk challenges the viability of the $500 billion Stargate AI initiative

 Elon Musk has cast doubt on the financial feasibility of Trump’s Stargate AI project, questioning OpenAI, Oracle, and SoftBank’s ability to meet their $500 billion investment commitment.

In a fiery exchange, billionaire entrepreneur Elon Musk has publicly criticized the $500 billion Stargate AI infrastructure project announced by President Donald Trump. Musk, the CEO of Tesla and SpaceX, claims that key stakeholders OpenAI, Oracle, and SoftBank lack the financial capacity to fulfill the ambitious initiative. The Stargate project, which aims to revolutionize artificial intelligence infrastructure in the United States, was unveiled on Trump’s first full day in office.

Musk Questions Funding Behind Stargate AI


Elon Musk did not hold back on Tuesday evening, taking to X (formerly Twitter) to challenge the credibility of the Stargate AI project. Responding to OpenAI’s announcement post, Musk claimed, “They actually don't have any money. SoftBank has secured under $10 billion. I have this information for sure.”

The Stargate initiative, described as a game-changer by President Trump, pledges to invest $500 billion and create over 100,000 jobs. However, Musk’s remarks have cast a shadow over the project’s financial backing, undermining its viability.

OpenAI CEO Responds to Musk’s Claims


In a measured response on Wednesday morning, OpenAI CEO Sam Altman addressed Musk directly, writing, “I sincerely respect your achievements and think you are the most inspiring entrepreneur of our time.” However, Altman notably avoided commenting on Musk’s funding allegations.

The announcement of Stargate saw high-profile figures, including Oracle co-founder Larry Ellison and SoftBank CEO Masayoshi Son, join Trump at the White House. Ellison revealed that 10 data centers, each spanning 500,000 square feet, are already under construction in Abilene, Texas, with plans for an additional 10 underway.

Strained Ties Between Musk and Altman


The relationship between Musk and Altman has been far from harmonious. Earlier this year, Musk and his AI company, xAI, sued OpenAI for breach of contract before later dropping the lawsuit in favor of legal action against Altman in federal court.

Altman has previously maintained a diplomatic stance toward Musk. In December, when asked about Musk’s potential influence in Washington, Altman remarked, “I could be wrong, but I strongly believe that Elon will do the right thing.”

Oracle, SoftBank, and Microsoft’s Role


SoftBank, Oracle, and OpenAI have yet to comment on Musk’s criticisms. OpenAI’s announcement highlighted that the Stargate project would begin deploying $100 billion immediately. It also named Microsoft as a critical technology partner, with CEO Satya Nadella confirming plans to invest $80 billion in AI-capable data centers in the next fiscal year.

When asked about Stargate on CNBC’s Squawk Box, Nadella stated, “I’m not particularly into the details of what they’re investing in.” In response to Musk’s skepticism about the project’s funding, Nadella quipped, “Look, all I know is I’m good for my $80 billion.”

A Project in the Spotlight


The Stargate AI project has attracted significant attention for its bold ambitions and potential to redefine AI infrastructure in the United States. However, Elon Musk’s pointed remarks highlight the challenges of delivering on such a large-scale initiative.

As discussions unfold, the world watches closely to see if Stargate will fulfill its promise of transforming the AI landscape—or if Musk’s doubts will prove prophetic.

The Stargate AI project has ignited debates about funding transparency and feasibility, with Elon Musk’s criticisms adding fuel to the fire. As stakeholders push forward, the project’s success—or failure—will have far-reaching implications for AI development and global tech leadership.