Elon musk bashes Staegate Ai project

Musk Bashes Trump’s New Stargate AI Initiative With OpenAI And Oracle As ‘Fake’—Here’s Why:-

In less than two days, Elon Musk expressed his displeasure with President Donald Trump’s announcement of a $500 billion AI deal, aimed at boosting Musk’s artificial intelligence company. Musk took to his X platform to question the legitimacy of the “Stargate” 💻AI infrastructure project, which Trump introduced at the White House on Tuesday. The deal, backed by OpenAI, Oracle, SoftBank, and Emirati investment firm MGX, was touted as a monumental ventu

re with an initial $100 billion in funding and plans for $500 billion over the next four years.

However, Musk challenged the deal’s funding, claiming on X that “they don’t actually have the money.” He suggested that SoftBank, one of the project’s key partners, had “well under $10B secured,” citing what he called “good authority.”

In response, a person familiar with the project’s funding disputed Musk’s claim, saying that the $100 billion was already secured through equity from the founding partners and other investors, including debt fundraising.

OpenAI CEO Sam Altman fired back on Wednesday, calling Musk’s funding claim “wrong” and suggesting that Musk’s position as an advisor to Trump might influence his remarks. Musk, not backing down, escalated his criticism by labeling the Stargate project as “fake” and calling Altman a “swindler.”

A source familiar with the project’s funding quickly refuted Musk’s claim, assuring Forbes that the $100 billion was secured through equity from the project’s founding partners and co-investors, along with additional debt fundraising. Musk’s accusations were not taken lightly, and Sam Altman, CEO of OpenAI, responded sharply, calling Musk’s assertions “wrong” and suggesting that Musk’s focus on personal business interests might be clouding his judgment in his role as advisor to President Trump.

In a further escalation, Musk labeled the Stargate project as “fake” and accused Altman of being a “swindler.” The public spat marks a rare clash between two of Silicon Valley's most influential figures, both of whom are heavily involved in the AI industry. Musk’s criticism also underscores the tense relationship between the tech mogul and the Trump administration, especially in light of Musk's prominent position on the "Department of Government Efficiency" commission, a role that many believe he uses to influence government policy and business opportunities. The controversy surrounding the Stargate project raises questions about the future of the initiative and whether it can overcome the doubts being cast by Musk and others in the tech community.

Elon Musk Critiques Trump’s $500 Billion AI Deal Amid Industry Rivalries:-

Elon Musk’s sharp critique of President Donald Trump’s $500 billion “Stargate” AI infrastructure project has raised eyebrows, particularly given Musk’s close ties to the Trump administration. MSNBC contributor Sam Stein highlighted the unusual nature of Musk’s remarks, noting that a "senior official in the White House" publicly undermining the president’s major announcement is “definitely a first” in his memory. Musk’s comments, made on his social media platform X, cast doubt on the project’s financial backing, claiming that SoftBank, one of the major investors, had “well under $10B secured.”

The “Stargate” deal, however, represents a significant win for OpenAI, positioning it well against competitors in the increasingly competitive AI industry. OpenAI, led by Sam Altman, is in direct competition with Musk-backed xAI, Google, Meta, Anthropic (which is funded by Amazon), and other big tech players. UBS analyst Karl Keirstead noted in a recent report that the deal strengthens OpenAI’s long-term position in the race to develop artificial general intelligence (AGI), a technology that many believe will define the future of AI.

Keirstead further emphasized that Open AI’s success in securing the Stargate project puts it in a favorable position to “win the model war” against its competitors, including Musk’s own x AI. As Musk’s criticism escalates, it’s clear that tensions between the tech giants are growing, with both Open AI and  X  AI positioning themselves as frontrunners in the battle for AGI dominance.

Musk’s comments also highlight the complexity of his relationship with Trump and the broader political landscape. As an advisor to Trump’s “Department of Government Efficiency,” Musk's criticism of a project closely tied to the president may suggest deeper strategic concerns related to his own business ventures, especially as the AI race intensifies. The Stargate deal, which was presented as a monumental investment in America’s AI infrastructure, now faces growing skepticism from key figures within the tech world, raising questions about its future viability.

Key Background:- 

Musk’s Criticism of Stargate Project Tied to Feud with OpenAI

Elon Musk’s pushback against the $500 billion Stargate AI deal is likely rooted in his ongoing feud with OpenAI and its CEO, Sam Altman. Musk co-founded OpenAI in 2015 as a nonprofit but left the company in 2018. He later launched his own AI startup, X  AI, which directly competes with OpenAI. Last year, Musk sued OpenAI over its shift towards profit-taking. Their rivalry has escalated into public name-calling, with Musk calling Altman “someone who is not trustworthy” in an October interview, while Altman labeled Musk a “bully” in December. Musk’s X AI was most recently valued at $50 billion, a fraction of OpenAI’s $150 billion valuation.

Despite Musk’s criticism of Stargate, his close ally Larry Ellison, a former Tesla board member, is involved in the project. Musk h

as previously praised Ellison as a mentor and “friend,” which adds a layer of complexity to Musk’s stance on the deal.

Meanwhile, stocks of companies tied to the Stargate project saw significant gains. SoftBank’s stock rose 11% in Tokyo, Oracle gained 7%, and technology partners Nvidia and Arm Holdings surged 5% and 15%, respectively, by mid-afternoon on Wednesday.

On the financial front, the companies involved in Stargate saw a significant boost in their stock prices. SoftBank, one of the primary investors in the project, saw an 11% jump in its stock price during Tokyo trading, while Oracle gained 7%. Nvidia and Arm Holdings, both key players in the AI space, also saw increases of 5% and 15%, respectively, as the market responded positively to the deal’s potential.

The backlash from Musk also raises questions about the future of the AI industry, as the rivalry between OpenAI and xAI intensifies. With billions of dollars on the line and the potential for AI to reshape industries globally, the battle for AI dominance has become one of the most high-stakes and publicly visible tech rivalries of the decade. As Musk and Altman continue to exchange barbs, industry experts and investors will be closely watching how this feud influences the future of artificial intelligence.

Oracle Stock Soars as Trump Unveils $500 Billion AI Infrastructure Deal: 

Oracle’s stock saw significant gains on the first day of trading during President Donald Trump’s second term, following the announcement of a monumental $500 billion AI infrastructure partnership. The deal, named "Stargate," brings together Oracle, OpenAI, Nvidia, and Japan’s SoftBank to create a massive AI infrastructure project aimed at reshaping the future of artificial intelligence. The initiative, which also involves Microsoft-backed OpenAI, the creator of ChatGPT, and top AI tech designer Nvidia, promises to revolutionize the industry.

Trump unveiled the project at a White House press conference with Oracle’s chairman Larry Ellison, OpenAI’s CEO Sam Altman, and SoftBank’s CEO Masayoshi Son by his side. The Stargate project will see an initial $100 billion investment in U.S. infrastructure in its first year, with a total of $500 billion to be invested over the next four years. OpenAI's press release states that the project will create "hundreds of thousands" of new American jobs.

Son, who will serve as chairman of Stargate, announced that OpenAI would assume operational responsibility for the project. The initiative is funded by OpenAI, Oracle, and SoftBank, with each contributing to the financing.

“This will be the most important project of this era,” Altman said during the press conference, emphasizing the monumental impact the project is expected to have on both the U.S. economy and the global AI landscape.

 

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