Why Elon Musk and Sam Altman sparring over Donald Trump backed $500 billion Stargate project? Key thing to know

Tesla boss Elon Musk is in dispute with OpenAI CEO Sam Altman on the Stargate artificial intelligence infrastructure project proposed by US President Donald Trump.

On Tuesday, Donald Trump mentioned to set up a joint venture named Stargate Project to build AI infrastructure with an investment of nearly $500 billion through a partnership with ChatGPT maker, OpenAI, Oracle and SoftBank.

The new venture has started to build data centres and the electricity generation needed already in order to develop AI technology.

Trump referred to the project as “a resounding declaration of confidence in America’s potential” under his new administration. The initial private investment of the project is $100 billion, which might reach five times of the total amount invested so far.

However, Elon Musk, leading Trump’s new Department of Government Efficiency or DOGE, aimed at a cost-cutting initiative, has questioned the need for such high-value investment.

Taking to his social media platform X, Musk wrote, “They don’t actually have the money.”

“SoftBank has well under $10B secured. I have that on good authority,” he added.

Sam Altman responded to Musk’s claim and said, “wrong, as you surely know.” He also asked Musk to visit the first site which is under construction in Texas.

“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 (America) first,” Altman wrote on X.

Elon Musk vs Sam Altman

However, this is not the first time that both Musk and Altman have clashed over an issue. The feud between the two began as a boardroom rivalry at OpenAI, founded by Musk, Altman and others.

Last year, Musk, an investor and board member at OpenAI, sued the company, alleging a violation of its founding agreement.

In 2023, Musk founded his own AI company, xAI, which will have a data centre in Memphis, Tennesee. According to Musk, xAI faces severe competition from OpenAI and Microsoft which has supplied resources to build ChatGPT, reported AP.

About Stargate

On January 21, 2025, OpenAI announced the new venture.

“The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” OpenAI said on its website.

“The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman,” it added.