Elon Musk clashes with OpenAI CEO Sam Altman over Trump-supported Stargate AI data centre project

The project aims to develop advanced AI technology through new data centers and renewable energy infrastructure, starting with an initial private investment of $100 billion.
A collage of OpenAI CEO Sam Altman and tech mogul Elon Musk.
A collage of OpenAI CEO Sam Altman and tech mogul Elon Musk.File Photo | AP
Updated on
2 min read

WASHINGTON: Elon Musk and OpenAI CEO Sam Altman are publicly clashing over the Stargate artificial intelligence infrastructure project, a venture heavily promoted by President Donald Trump. The feud, rooted in a longstanding rivalry between the two tech billionaires, is now testing Musk’s influence within Trump’s administration.

Trump announced the Stargate initiative on Tuesday, a joint venture involving OpenAI, Oracle, and SoftBank, with plans to invest up to $500 billion. The project aims to develop advanced AI technology through new data centers and renewable energy infrastructure, starting with an initial private investment of $100 billion. Trump described the venture as “a resounding declaration of confidence in America’s potential” under his leadership.

However, Musk, a close adviser to Trump and the head of a government cost-cutting initiative, questioned the validity of the investment. “They don’t actually have the money,” Musk wrote on his social platform, X. “SoftBank has well under $10 billion secured. I have that on good authority.”

Altman responded Wednesday, refuting Musk’s claims and inviting him to visit the first construction site in Texas. “This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role, I hope you’ll mostly put (America) first,” Altman wrote, using an American flag emoji.

The conflict stems from a years-long dispute that began during Musk and Altman’s time on OpenAI’s board. Musk, an early investor in OpenAI, sued the company last year, accusing it of abandoning its nonprofit mission to prioritize profits. He has since escalated his legal claims, seeking a court order to halt OpenAI’s transformation into a for-profit entity. A hearing is scheduled for February in a California federal court.

Musk, who launched his own AI company, AI, last year, has accused OpenAI and its partner Microsoft of creating unfair competition. Microsoft has provided substantial computing resources for OpenAI’s AI systems, including ChatGPT. AI is reportedly building its own data center in Memphis, Tennessee, to compete with OpenAI’s infrastructure.

Stargate has been in development for several months. Tech news outlet The Information first reported on the project in March 2024. Crusoe Energy Systems, along with energy tech firm Lancium, announced a large AI data center in Abilene, Texas, last July, powered by renewable energy sources. The project, initially described as a multibillion-dollar investment, has now been revealed as the first phase of Stargate.

Abilene Mayor Weldon Hurt said construction began about nine months ago, with the project expanding far beyond initial expectations. Oracle co-founder Larry Ellison confirmed that the Abilene facility is the first of 10 planned data centers, with the possibility of growing to 20. The region’s energy resources, including solar, wind, oil, and gas, make it an ideal location for the development.

Missing from Trump’s announcement was Microsoft, a longtime OpenAI partner that has invested billions into its AI infrastructure. Microsoft is reportedly involved in Stargate alongside Nvidia and Arm but emphasized that its OpenAI partnership is evolving to focus on research and model training.

When asked about Musk’s criticisms during a CNBC interview at the World Economic Forum in Davos, Switzerland, Microsoft CEO Satya Nadella pivoted to his company’s $80 billion AI infrastructure expansion, with $50 billion allocated for U.S. projects. “Look, all I know is, I’m good for my $80 billion,” Nadella said, laughing.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com