Elon Musk and Sam Altman are at odds over Stargate, a $500 billion AI initiative supported by OpenAI, Oracle, and SoftBank. The project aims to build data centers and infrastructure to advance AI technology. Former U.S. President Donald Trump has praised the project, calling it a significant investment in America’s future. However, Musk has publicly criticized the initiative, creating tension with Altman.

What Is the Stargate AI Project?

On January 23, 2025, Donald Trump introduced Stargate as a massive plan to enhance AI development. The project involves building data centers and energy systems to support AI growth, with an expected investment of $500 billion. Trump announced that $100 billion in funding is already secured and described the initiative as a milestone for U.S. innovation.

Musk’s Concerns: SoftBank’s Funding Claims

Elon Musk, CEO of Tesla and SpaceX, questioned the financial viability of the Stargate project. He claimed that SoftBank, one of the key backers, has less than $10 billion secured. “They don’t actually have the money,” Musk wrote on his platform, X, sparking widespread debate about the project’s feasibility.

Altman Responds: Invites Musk to Texas

Sam Altman, OpenAI’s CEO, responded by inviting Musk to visit the first Stargate site in Texas. Altman dismissed Musk’s claims as false and emphasized the project’s importance for the nation. “This is great for the country,” Altman wrote, urging Musk to prioritize national interests over personal business concerns.

A History of Conflict Between Musk and Altman

This clash is the latest in a long-standing feud between the two tech leaders. Musk and Altman co-founded OpenAI, but their relationship soured when OpenAI shifted from a nonprofit to a for-profit model. Musk opposed this change, arguing it betrayed OpenAI’s original mission of public benefit.

In 2023, Musk filed a lawsuit against OpenAI, accusing it of prioritizing profits over its nonprofit goals. Musk has since launched his own AI company, xAI, and continues to criticize OpenAI’s close ties with Microsoft, which provides significant support for OpenAI’s projects.

What Makes Stargate Unique?

First reported in March 2024, Stargate focuses on creating AI-ready infrastructure, including renewable energy-powered data centers. OpenAI, Oracle, and SoftBank are collaborating to develop the project, with Texas serving as a key location due to its rich natural resources like wind, oil, and gas.

Green energy companies like Crusoe Energy Systems and Lancium are partners in the project, aiming to make it cost-efficient and sustainable. The flagship AI data center in Abilene, Texas, was announced in July 2024, and plans for more centers are underway.

Microsoft’s Role

Although Microsoft has been a key OpenAI partner, its involvement in Stargate remains limited. CEO Satya Nadella addressed Musk’s concerns with humor, saying, “All I know is, I’m good for my $80 billion,” referencing Microsoft’s ongoing AI investments.

A Divisive Yet Ambitious Project

As the Stargate project progresses, it has become a point of contention among major tech leaders. While supporters see it as a game-changer for AI, critics like Musk raise concerns about its feasibility and priorities. Despite the disagreements, the project aims to shape the future of AI technology in the U.S. and beyond.