Sam Altman and Elon Musk Spar Over Stargate AI Project Funding

Sam Altman and Elon Musk Spar Over Stargate AI Project Funding

OpenAI CEO Sam Altman and X owner Elon Musk recently engaged in a public disagreement over the funding of Stargate, a new $500 billion AI infrastructure project. The ambitious venture, announced by former President Donald Trump, involves OpenAI, SoftBank, and Oracle, and aims to accelerate the development of Artificial General Intelligence (AGI) in the United States.

Musk Questions Stargate’s Financial Viability

Following OpenAI’s announcement of an immediate $100 billion deployment for Stargate, Musk publicly questioned the project’s financial backing on X (formerly Twitter). He asserted that the involved parties lacked the necessary funds, specifically claiming that SoftBank had secured less than $10 billion, significantly less than the announced investment. Musk did not provide evidence to support this claim.

Image of Elon Musk's X post questioning Stargate's funding.Image of Elon Musk's X post questioning Stargate's funding.

Altman Defends Stargate and Extends an Invitation

Altman responded to Musk’s criticisms with a mix of diplomacy and rebuttal. He initially praised Musk as an inspiring entrepreneur but countered his financial concerns, stating that Musk’s assessment of Stargate’s capital was inaccurate. Altman even invited Musk to visit the project’s first infrastructure site. He further urged Musk to prioritize American interests in his new leadership role, suggesting that Stargate’s success would benefit the country.

Image of Sam Altman's X post responding to Elon Musk.Image of Sam Altman's X post responding to Elon Musk.

Musk, instead of directly addressing Altman’s comments, shared an older post from Altman expressing gratitude to LinkedIn co-founder Reid Hoffman for helping prevent Trump’s re-election in 2020. This highlighted Altman’s seemingly evolving stance on the former president, given his presence at Trump’s recent inauguration and subsequent positive remarks about him on X. Altman acknowledged a shift in his perspective, stating he now believes Trump will be “incredible for the country in many ways.”

A History of Conflict

The Stargate dispute is the latest chapter in a long-running feud between Musk and Altman. Musk, a co-founder of OpenAI, departed from the company’s board in 2018 and has since become a prominent critic. He has launched his own AI endeavors, including xAI, a direct competitor to OpenAI.

Image of a previous interaction between Elon Musk and Sam Altman on X.Image of a previous interaction between Elon Musk and Sam Altman on X.

Their conflict has also manifested in legal battles, with Musk suing OpenAI for allegedly betraying its non-profit mission through its partnership with Microsoft. While the initial lawsuit was withdrawn, Musk refiled it in August 2024, further escalating the tension. He also recently filed an injunction to prevent OpenAI’s transition to a for-profit entity.

Despite the ongoing friction, Altman has generally maintained a more diplomatic tone toward Musk, even in the face of Musk’s less-than-flattering nickname for him. Altman recently acknowledged Musk’s ambition and influence, stating that Musk “pushes all of us to be more ambitious,” while also suggesting that Musk is not always fair in his dealings.

This ongoing saga between two of the most influential figures in the AI landscape underscores the high stakes and intense competition in the race to develop and deploy transformative AI technologies.

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