Musk bashes Trump-backed AI mega project
Tech titan Elon Musk expressed skepticism on Wednesday regarding a $500 billion AI project announced by US President Donald Trump, asserting that the promised funds for the investment were not actually available. Musk's remarks highlighted a rare divergence between the world's richest man and Trump, particularly as Musk had played a significant role in the recent election campaign by contributing $270 million.
Doubts on Stargate Project
On his first full day in the White House, Trump unveiled a major initiative to develop infrastructure for artificial intelligence, spearheaded by Japanese conglomerate SoftBank and the creator of ChatGPT, OpenAI. Trump stated that the project, named Stargate, would invest "at least $500 billion in AI infrastructure in the United States." However, Musk took to his social media platform X to reveal that the main investors did not possess the funds as claimed.
Dispute and Investment Details
Musk and OpenAI CEO Sam Altman have been engaged in a public dispute, with Musk initiating multiple lawsuits against the company behind ChatGPT. Altman, responding to Musk's assertions, invited him to visit the ongoing project site, emphasizing the significance of the initiative for the country.
The Stargate project aims to invest an initial $100 billion, with plans to reach $500 billion over four years. Alongside SoftBank and OpenAI, Abu Dhabi's MGX, Oracle, Arm, Microsoft, and Nvidia are also involved in funding and technology partnerships for the venture.
Funding Sources and Future Plans
Despite claims from Trump's spokeswoman Karoline Leavitt that the investments were confirmed, doubts lingered regarding the actual availability of funds from key players like SoftBank and Oracle. SoftBank, under the leadership of CEO Masayoshi Son, announced plans to immediately deploy $100 billion for the project but refrained from providing further details.
Reports indicated that SoftBank and OpenAI were each set to contribute $19 billion to Stargate, with Oracle and MGX offering significant financial support as well. The remainder of the funding was expected to come from limited partners and debt financing.
While Son's track record includes both remarkable successes and failures in investments, his commitment to pouring capital into the US economy has been evident, with promises of job creation. The Stargate project signifies a massive endeavor in the realm of artificial intelligence infrastructure, with implications for technological advancement and economic growth in the United States.
