Washington, Jan 23 — Billionaire entrepreneur Elon Musk has cast doubt on the ambitious $500 billion AI infrastructure project announced by US President Donald Trump, questioning whether the promised funding is actually in place.
In a rare public disagreement between Musk and Trump, the Tesla CEO criticized the project just a day after Trump, now back in the White House, unveiled the initiative alongside Japanese conglomerate SoftBank and OpenAI, the makers of ChatGPT. The project, dubbed Stargate, aims to invest heavily in artificial intelligence infrastructure across the United States.
Trump described the initiative as “a transformative investment of at least $500 billion” to solidify the US as a global leader in AI. However, Musk, who played a significant role in Trump’s reelection campaign with a $270 million contribution, quickly took to his platform X (formerly Twitter) to dispute the financial claims.
“The primary investors don’t actually have the money,” Musk wrote, further alleging that “SoftBank has well under $10B secured. I have that on good authority.”
Clash of Titans
Musk’s comments appear to target OpenAI, a company he co-founded but left in 2018, citing disagreements over its direction. OpenAI CEO Sam Altman, who joined Trump at the announcement, fired back at Musk on X, saying, “Wrong, as you surely know. Want to visit the first site already under construction?”
Altman also defended the initiative, stating, “This is great for the country. I realize what’s great for the country isn’t always what’s optimal for your companies, but in your new role, I hope you’ll put America first.”
Funding Questions Loom
Despite the bold announcement, skepticism over the financial viability of Stargate has grown. According to the Wall Street Journal, key investors SoftBank and Oracle hold $30 billion and $11 billion in cash and securities, respectively—far short of the promised $500 billion.
The White House and project stakeholders insist the funds will come together. “The American people should trust President Trump and these CEOs. Investments are coming, and American jobs are on the way,” said Trump spokesperson Karoline Leavitt during an interview with Fox News.
The project’s initial phase includes a $100 billion investment, with a goal of reaching $500 billion within four years. Construction is already underway on a major data center in Texas, supported by funding from Abu Dhabi’s AI-focused state fund MGX, Oracle, and technology contributions from Arm, Microsoft, and Nvidia.
Trump has also touted additional international investment in US data centers, including a $20 billion pledge from the UAE earlier this month.
While Stargate promises transformative change for the US AI landscape, Musk’s critique highlights ongoing tensions within the tech industry—and raises questions about whether the bold vision can live up to its promise.