Trump Unveils $500 Billion ‘Stargate’ AI Project; Musk Raises Funding Concerns

Trump Backs $500 Billion AI Project 'Stargate'; Musk Questions Funding

In a major tech news update today, the United States is stepping into a new era of Artificial Intelligence with the launch of 'Stargate', the world's largest AI project. This groundbreaking initiative, announced by Donald Trump at the White House, has the backing of three tech giants aiming for global AI dominance. The project boasts an ambitious investment of at least $500 billion, with an initial $100 billion deployment, and promises to create over 100,000 US jobs.

Spearheading this massive undertaking are OpenAI founder Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son. While Nvidia is rumored to be in talks for a potential partnership, there's no official confirmation yet. The project aims to build the necessary physical and virtual infrastructure for the next generation of AI. Oracle's Larry Ellison revealed that Stargate's first million-square-foot data center is already under construction in Texas.

Amidst this tech innovation, Elon Musk, a notable Trump supporter, has expressed skepticism. Publicly questioning the project's funding on his social media platform X, Musk stated, "They don't actually have the money ($500 billion)." He further claimed, "SoftBank has well under $10B secured. I have that on good authority." Musk also engaged with users who criticized the project, fueling speculations about a fallout between OpenAI and Microsoft.

This latest development adds another layer to the ongoing rivalry between Musk and Altman. Once co-founders of OpenAI, their relationship has significantly deteriorated. Musk, who initially funded OpenAI as a non-profit, left in 2018 and has since filed multiple lawsuits against OpenAI and Altman, alleging violations of licensing agreements and anti-trust laws. Musk claims he was manipulated into co-founding OpenAI and that Altman and his partners betrayed him by shifting the company to a for-profit model. Musk's lawsuit describes the situation as a "textbook tale of altruism versus greed" and accuses Altman of "perfidy and deceit."

Despite the controversy, Altman expressed gratitude to President Trump, stating that Stargate will solidify America's position as a global AI leader. He believes this is the most significant project of our time. The Wall Street Journal reports Oracle has roughly $11 billion in cash and securities, while SoftBank has about $30 billion. OpenAI, currently operating on borrowed funds, is reportedly a loss-making entity. Despite this, the three companies have committed an initial $100 billion to Stargate, with a pledged investment of at least $500 billion over the next four years.

This latest business news underscores the intensifying competition and high stakes within the global AI market. As 'Stargate' unfolds, its impact on the future of AI and the tech world will be closely watched.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top