“First Buddy” Elon Musk attempted to undermine President Donald Trump’s announcement of a new, enormous investment in AI infrastructure from the White House.
On his social media site X, Musk stated, “They don’t actually have the money.” “SoftBank has secured well under $10 billion.” I have strong authority to say that.
According to Trump, the investment would establish a new business named Stargate to expand the US’s artificial intelligence infrastructure. During the announcement, Trump was accompanied by the executives of SoftBank, OpenAI, and Oracle. The project will begin with a $100 billion investment from each of their corporations, with plans to invest up to $500 billion in Stargate over the next several years.
The remarks are a noteworthy rebuke of a significant White House initiative from a member of Trump’s closest inner circle. Musk claimed to have been in the Oval Office on Tuesday when Trump signed a pardon for Ross William Ulbricht, the creator of the dark web marketplace SilkRoad, demonstrating his level of involvement in the early days of the administration. Following Trump’s sweeping pardon, Musk also sent a senior employee from his SpaceX and X businesses to assist in securing the release of convicted January 6 rioters.
However, Musk’s pursuit of an OpenAI project may not come as a surprise. Sam Altman, the CEO of OpenAI, who attended the White House for the announcement, is currently facing legal action from Musk. In the complaint, Musk, who has stated that he “doesn’t trust” Altman, alleges that ChatGPT has renounced its initial charitable purpose by keeping some of its most cutting-edge AI technology for private clients.
Although the corporations interested in Stargate have not made their contributions to the fund publicly known, they might raise financing or enlist additional equity investors to finance the project without necessarily needing the money in the bank.
In a Fox News interview on Wednesday, White House press secretary Karoline Leavitt rejected Musk’s remarks, stating that “the American people should take President Trump and those CEOs’ words for it.”
As our enemies, like China, are well advanced in this field, Leavitt stated, “President Trump is very excited about this infrastructure announcement in the field of AI, which is obviously growing and something the United States of America needs to capitalise on.” “The American people should believe what President Trump and those CEOs say—these investments are coming to our wonderful nation, and they will bring American jobs with them.”
“Wrong, as you surely know,” Altman wrote in direct response to Musk’s assertion on X. Would you like to visit the first site that has already been started? This is fantastic for the nation. I hope that in your new position, you would prioritise America, even if I know that what is best for the nation isn’t always what is best for your businesses.
Musk’s claim is untrue, according to a source with knowledge of Stargate.
According to the source, Softbank has $24.3 billion in cash on its balance sheet as of its most recent earnings, and it feels comfortable taking on further debt to help finance the project because it has the resources to obtain more funding.
According to the source, OpenAI recently revealed that it has more than $10 billion from its most recent round of venture funding, Oracle has $11 billion in cash on its balance sheet, and MGX has $100 billion in financial commitments.
On Wednesday, Microsoft CEO Satya Nadella, who is collaborating with OpenAI on Stargate, stated on CNBC that “all I know is I’m good for my $80 billion.”
