Elon Musk has openly criticized the massive $500 billion artificial intelligence initiative recently announced by former President Donald Trump, raising doubts about the project’s financial backing. Musk, who maintains a close relationship with Trump’s administration, claimed that SoftBank, one of the primary investors, lacks the necessary funds to support the ambitious venture. He asserted that the company has secured well under $10 billion, casting doubt on the feasibility of the project.
The initiative, known as Stargate, is designed to enhance AI infrastructure in the United States, with major contributions from SoftBank, OpenAI, and Oracle. These companies have pledged an initial $100 billion, with plans to expand the investment to $500 billion in the coming years. The announcement was made at the White House, where leaders from each organization stood alongside Trump to unveil the project.
Musk’s comments represent a significant critique of a White House-backed initiative, particularly given his strong influence within Trump’s inner circle. His involvement in the administration has been evident in recent events, including his presence in the Oval Office when Trump signed a pardon for Ross Ulbricht, the founder of Silk Road. Additionally, Musk dispatched a senior executive from SpaceX and X to assist in securing pardons for January 6 rioters, further solidifying his role in shaping policy discussions.
His opposition to Stargate may also stem from his ongoing legal battle with OpenAI and its CEO Sam Altman. Musk has accused the AI company of straying from its original nonprofit mission, arguing that it has prioritized private customers over public benefit. He has previously expressed distrust toward Altman, which likely fuels his skepticism toward OpenAI’s involvement in the AI project.
Despite Musk’s claims, sources familiar with Stargate have pushed back, asserting that the project’s financial foundation is secure. SoftBank reportedly holds $24.3 billion in cash and has the capacity to take on additional debt to contribute to the initiative. MGX, another key player, has $100 billion in capital commitments, while Oracle has $11 billion in cash reserves. Furthermore, OpenAI recently secured $10 billion through venture capital investments, strengthening its financial position.
Microsoft, another key partner in Stargate, has also reaffirmed its commitment. CEO Satya Nadella confirmed that Microsoft has committed $80 billion toward the project, adding to the growing list of major backers. While the companies involved have yet to fully disclose the structure of their funding, they are not required to have all capital on hand immediately. They may opt to raise debt or bring in additional equity investors as the project progresses.
Musk’s skepticism places him at odds with a project that is being positioned as a transformative effort to advance the United States’ AI capabilities. As tensions rise between Musk and OpenAI’s leadership, the fate of Stargate will likely remain a point of contention in the evolving AI landscape.