Why Elon Musk and Sam Altman are feuding over Donald Trump’s support for $500 billion Stargate project? Key things to know

Tesla boss Elon Musk is in dispute with OpenAI CEO Sam Altman over US President Donald Trump’s proposed Stargate artificial intelligence infrastructure project.

On Tuesday, Donald Trump said he would invest nearly $500 billion in a joint venture called the Stargate Project to build artificial intelligence infrastructure in partnership with ChatGPT maker OpenAI, Oracle and SoftBank.

New companies have begun building data centers and power generation facilities needed to develop artificial intelligence technology.

Trump called the project “a resounding declaration of confidence in America’s potential under a new administration.” The initial private investment in the project is US$100 billion, which may be five times the current total investment.

However, Elon Musk, who leads cost-cutting initiatives at Trump’s new Department of Government Effectiveness (DOGE), has questioned the need for such high-value investments.

“They literally have no money,” Musk wrote on his social media platform X.

“SoftBank’s guarantee amount is well below $10B. I have full authority,” he added.

Sam Altman responded to Musk’s statement and said: “This is wrong, you must know it.” He also invited Musk to visit the first construction site in Texas.

“It’s good for the country. I realize what’s good for the country isn’t always what’s best for your company, but in your new role, I hope you’ll put (America) first,” Ott Mann wrote on X.

Elon Musk VS Sam Altman

However, this is not the first time Musk and Altman have clashed over issues. The feud between the two began over a boardroom battle at OpenAI, the company founded by Musk, Altman and others.

Last year, Musk, an investor and board member in OpenAI, sued the company, alleging it violated the founding agreement.

In 2023, Musk founded his own artificial intelligence company, xAI, which will have a data center in Memphis, Tennessee. According to the Associated Press, Musk said that xAI faces stiff competition from OpenAI and Microsoft, which provided resources to build ChatGPT.

About Stargate

On January 21, 2025, OpenAI announced the establishment of a new company.

“The Stargate Project is a new company that plans to invest $500 billion over the next four years to build new artificial intelligence infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will ensure that the United States Leadership in artificial intelligence, creating hundreds of thousands of jobs in the United States and delivering significant economic benefits around the world. This project will not only support the reindustrialization of the United States, but will also provide strategies to protect the national security of the United States and its allies. capabilities,” OpenAI said on its website.

“Stargate’s initial equity backers are SoftBank, OpenAI, Oracle and MGX. SoftBank and OpenAI are Stargate’s main partners, with SoftBank assuming financial responsibility and OpenAI assuming operational responsibility. Masayoshi Son will serve as chairman,” it added.