Elon Musk and OpenAI CEO Sam Altman are at odds over the Stargate artificial intelligence (AI) infrastructure project supported by President Donald Trump. This conflict is the latest in a longstanding feud between the two tech billionaires that originated on OpenAI’s board and is now challenging Musk’s influence with the new president.
During a joint venture announcement investing up to $500 billion, Trump praised the partnership involving OpenAI, Oracle, and SoftBank, forming the new entity, Stargate. This venture is already in the process of building data centers and generating electricity to further develop rapidly advancing AI technology.
However, Musk, an advisor to Trump and leader of a government cost-cutting initiative, raised doubts about the investment shortly after the announcement. He questioned the actual availability of funds and pointed out that SoftBank had less than $10 billion secured.
Altman responded by inviting Musk to visit the first construction site in Texas, stating that the project is beneficial for the country. He emphasized the importance of prioritizing America’s interests, especially in Musk’s new role.
Behind the feud
The dispute over Stargate is part of a protracted conflict between Musk and Altman, stemming from a power struggle on OpenAI’s board. Musk, an early investor and board member of OpenAI, sued the company for deviating from its original nonprofit research goals. The feud has escalated, leading to legal action and a scheduled court hearing in February.
Musk, now the world’s richest man, founded xAI, a rival AI company, due to alleged unfair competition from OpenAI and its partner Microsoft. The rivalry has led to the development of competing AI technologies and infrastructure.
When did Stargate start?
The Stargate project was first reported in March 2024, preceding Trump’s announcement. Another company, Crusoe Energy Systems, disclosed a similar AI data center project outside Abilene, Texas, supported by a significant investment. The project aims to utilize renewable energy sources to power the data center efficiently.
It remains unclear how this initial project evolved into Trump’s Stargate investment plan. Larry Ellison confirmed that multiple data center buildings are in progress, with potential for expansion.
Where is Microsoft?
Microsoft’s absence from Trump’s announcement raised questions, as the company has been a key supporter of OpenAI. Microsoft clarified its continued investment in the Stargate project, focusing on enhancing research and model training capacities. Microsoft’s CEO, Satya Nadella, highlighted the company’s substantial investment in global AI infrastructure, with a significant portion allocated for the US.
