Musk blasts Trump’s announcement of investment in Stargate AI

Elon Musk said on Tuesday night that the technology giants OpenAI, Oracle and Softbank do not have enough money to fulfill their high-profile promise invest $500 billion in US AI infrastructure.

The CEO of Tesla and SpaceX made the comment hours after the president Donald Trump unveiled the massive project at the White House on his first full day in office.

“They don’t really have any money,” Musk wrote in response to OpenAI’s post on his social platform X about the new venture, dubbed Stargate.

“SoftBank has well under $10 billion secured. I’m fine with it,” Musk added.

On Wednesday morning, OpenAI CEO Sam Altman responded directly to Musk.

“I truly respect your accomplishments and believe you are the most inspiring entrepreneur of our time,” Altman wrote. He did not respond to Musk’s accusations of funding Stargate.

Softbank, OpenAI and Oracle did not immediately respond to CNBC’s request for comment on Musk’s statement.

Musk’s comments undermined Trump’s statement Tuesday afternoon that Stargate would “invest at least $500 billion” and create “more than 100,000 American jobs almost immediately.”

“I think it will be something very special. It’s going to lead to something that could be the biggest thing of all,” Trump said.

Trump was flanked by Altman, Oracle co-founder Larry Ellison and Softbank CEO Masayoshi Son as he spoke.

At the event, Ellison said 10 data centers, each measuring 500,000 square feet, are already under construction in Abilene, Texas, and that 10 more are in the works.

Musk, who heads Trump’s new government efficiency advisory board, DOJhas a strained relationship with Altman.

In March, Musk and his AI startup, xAI, sued OpenAI, claiming that breach of contract. Musk later abandoned this suit and sued Altman in federal court.

Altman’s response to X is consistent with the tone he’s previously taken toward Musk in public.

“I may be wrong, but I believe very strongly that Elon will do the right thing,” Altman said in December when asked if he was concerned about how Musk might use his influence in the White House.

In a statement, X on Tuesday, OpenAI said that Stargate “will begin deploying $100 billion immediately.”

Son will be chairman of the new company, whose original founders include SoftBank, OpenAI, Oracle and UAE-based lender MGX, according to the report.

News of the infrastructure initiative sent Oracle shares up 7% on Tuesday.

The OpenAI post is also listed Microsoft as one of the key initial technology partners in Stargate. Earlier this month, the company said it plans to invest $80 billion next fiscal year in AI-enabled data centers.

Asked about Stargate on CNBC on Wednesday, Microsoft CEO Satya Nadella said, “I’m not really into the details of what they’re investing in.”

When asked about Musk’s reports questioning Stargate’s funding, Nadella said, “Look, all I know is that I’m ready for my $80 billion.”