Elon Musk and Sam Altman, the CEO of OpenAI, are currently engaged in a public disagreement regarding the Stargate artificial intelligence infrastructure initiative recently highlighted by former President Donald Trump. This ongoing rift has evolved from previous tensions within OpenAI’s leadership structure, now focusing on the implications of this substantial investment in AI technology.
On Tuesday, Trump emphasized a notable joint venture that could potentially reach a staggering $500 billion, involving OpenAI—the creator of ChatGPT—in collaboration with Oracle and SoftBank. This partnership, known as Stargate, is reportedly in the early stages of establishing data centers and the necessary energy resources to support the advancement of rapidly developing AI technologies. Trump referred to it as a “resounding declaration of confidence in America’s potential” under his administration, announcing an initial private investment of $100 billion with the possibility of multiplying that figure significantly.
However, Musk, who has been a close advisor to Trump and an investor in his campaign, cast doubt on the validity of these financial commitments just hours after Trump’s speech. He took to his platform, X, to assert, “They don’t actually have the money,” claiming that SoftBank had less than $10 billion secured based on credible information he received.
In response, Altman countered Musk’s assertions the following day, suggesting that Musk was misinformed and inviting him to visit the construction site in Texas, which is already underway. “This is great for the country,” Altman stated, indicating that while his objectives may not align with Musk’s business interests, he hoped Musk would prioritize national interests in his new role.
The escalating public dispute over Stargate reflects a longer-standing rivalry between Musk and Altman that originated from their shared involvement in founding OpenAI. Musk, an initial investor and board member, has previously filed a lawsuit against OpenAI, alleging it strayed from its original nonprofit mission. This conflict has intensified over the past year, with Musk seeking a legal ruling to halt OpenAI’s transition into a for-profit entity. A court hearing regarding the case is scheduled for February in a federal court in California.
Musk, who runs companies such as Tesla and SpaceX, has also launched his own AI enterprise, xAI, which is creating a significant data center in Memphis, Tennessee. He has claimed that OpenAI, along with its partner Microsoft, poses unfair competition due to their substantial resources.
Regarding the Stargate project’s inception, tech publication The Information disclosed in March 2024 that discussions for an OpenAI data center dubbed Stargate had been in progress prior to Trump’s announcement. In July, Crusoe Energy Systems revealed plans to develop a large, purpose-built AI data center near Abilene, Texas, in collaboration with Lancium, an energy technology company. The partners highlighted a multibillion-dollar investment backing the project, although they refrained from disclosing specific backers.
As AI development demands significant electrical energy, both Crusoe and Lancium have committed to utilizing renewable energy sources, particularly nearby solar farms, to power the facility. They aim to maximize green energy output while minimizing costs. The Mayor of Abilene, Weldon Hurt, noted that construction began approximately nine months ago, suggesting they expected a smaller scale project compared to what has been announced.
Larry Ellison, Oracle’s co-founder, shared that the Abilene facility is the first of approximately 10 data centers under construction, with the potential for that number to double. Hurt emphasized the importance of this opportunity for Abilene, a city with around 130,000 residents, highlighting its diverse energy sources, including oil, gas, and major wind farms. Despite recent opposition from Trump regarding wind energy projects, he praised the community’s capability to support such a project.
Notably absent from Trump’s press conference was Microsoft, a long-time supporter of OpenAI, which has invested billions and facilitated the infrastructure essential for developing models like ChatGPT. This week, Microsoft confirmed its investment in the Stargate initiative while also adjusting its OpenAI partnership to support the development of additional research and training capacity.
During a recent interview at the World Economic Forum, Microsoft CEO Satya Nadella responded to Musk’s comments, focusing on his company’s ambitious $80 billion commitment to expanding its AI infrastructure globally, with $50 billion allocated for initiatives in the U.S. He humorously remarked, “Look, all I know is, I’m good for my $80 billion.”
