Trump's AI Investment and Musk's Opposition

February 3rd, 2025

Azzy Xiang

Trump announced a $500 billion AI project between OpenAI, Oracle, and Softbank to create a new company called Stargate that will be growing AI infrastructure in the US. Trump explains that Stargate will build data centers and create more than a hundred thousand jobs domestically. In a conflict with OpenAI CEO Sam Altman, Musk asserted he doesn't trust Altman because his company's product, ChatGPT, reserved advanced AI technology for private customers. Musk has been involved in an ongoing lawsuit with OpenAI and Altman regarding ChatGPT's technology reservations.

In addition, Musk also undermined the Stargate project by questioning the finances behind the creation of the infrastructure, and used his presence on X to attack Altman. Staff close to Trump have been majorly angered at the new senior White House advisor, as the Trump administration intended to push the project forward as a monumental and historical development. Trump's former chief strategist Steve Bannon also showed his strong dislike for Musk's actions, denouncing him for openly criticizing the president, although he does support Musk's efforts for government efficiency.

"They don't actually have the money. SoftBank has well under $10B secured. I have that on good authority," Musk posted on his social media platform X, leading to mixed reactions from Altman. Particularly, Altman responded to his criticism initially with praise for Musk, but then questioned if Musk will prioritize the US in his new role at the White House.

Stargate members assured they could contribute funds under Musk's doubts that the group could not put together funding. A Trump advisor questioned if this skirmish would lead to distance between Trump and Musk, but Trump merely dismissed the criticism. Trump expressed he was not bothered because he assumed the clash was merely because Musk hated Altman's involvement in the deal, and he related to openly disliking people as well.