Investing.com-- Elon Musk, CEO of Tesla Inc (NASDAQ:TSLA), has publicly criticized President Donald Trump's recently announced $500 billion Stargate project, questioning its financial viability.
The initiative, unveiled on Tuesday, aims to establish a vast artificial intelligence (AI) infrastructure in the United States through a collaboration between OpenAI, Oracle Corporation (NYSE:ORCL), SoftBank Group Corp. (TYO:9984), Microsoft Corporation (NASDAQ:MSFT), and other tech giants.
Musk expressed skepticism on his social media platform X on Wednesday, stating, "They don’t actually have the money," in a reply to OpenAI’s press release on the Stargate announcement, and further alleged that SoftBank has "well under $10B secured."
This statement challenges the project's initial $100 billion funding and its goal of reaching $500 billion by 2029.
In response, OpenAI CEO Sam Altman refuted Musk's claims on social media, asserting that the funding is secure and emphasizing the project's potential benefits for the country.
Altman stated, "This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put US first."
The Stargate project plans to construct multiple data centers, starting in Abilene, Texas, and aims to create over 100,000 American jobs. The collaboration could significantly bolster the nation's AI capabilities.
Earlier in the day, The Information reported that SoftBank and OpenAI have each pledged $19 billion to Stargate, citing sources familiar with the matter.