Elon Musk and Sam Altman, two important figures in technology, are having a big disagreement about an AI project called Stargate. This project is supported by OpenAI, Oracle, and SoftBank, and its goal is to build data centres and infrastructure to help with the development of AI. President Donald Trump has shown support for the project, calling it a major investment in America's future. However, Musk disagrees with Trump’s positive view and has publicly questioned the project, which has caused tension between the two business leaders.

The Stargate AI project: A massive $500 billion plan

On January 23, 2025, Donald Trump talked about the Stargate project, a big plan to boost AI technology with an investment of up to $500 billion. The project is a partnership between OpenAI, Oracle, and SoftBank, and it is already starting to build things like data centres and energy resources to help AI grow quickly. Trump mentioned that the project had already secured $100 billion in funding, and it could increase by five times that amount.

"This is a resounding declaration of confidence in America’s potential," Trump said, describing the project as a major step forward for the country. His remarks highlighted the significance of the private sector’s role in driving innovation in the U.S., especially in a cutting-edge sector like AI.

Musk disagrees: Claims SoftBank can't meet investment goals

While Trump expressed confidence in the Stargate project, Elon Musk, a key Trump adviser and the CEO of Tesla and SpaceX, quickly criticised the claims made about the project’s financial support. Musk, who has been actively involved in various government and cost-cutting initiatives, voiced scepticism over the investment figure of $500 billion.

"They don’t actually have the money,” Musk wrote on X, his social media platform. “SoftBank has well under $10B secured. I have that on good authority." This comment created a wave of controversy and questions about the feasibility of Stargate, causing an immediate clash with the OpenAI CEO, Sam Altman.

Altman responds: Invites Musk to see progress in Texas

In response, Sam Altman, the CEO of OpenAI, directly addressed Musk’s criticism. On January 24, 2025, Altman wrote that Musk was "wrong, as you surely know." He then invited Musk to visit the first site being developed in Texas. Altman’s post also included a message about the broader importance of the Stargate project.

“This is great for the country. I realise 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 stated, including an emoji of the U.S. flag to emphasise the national importance of the initiative. His remarks seemed to reflect the continuing rivalry between the two tech giants, who have had disagreements dating back several years.

Ongoing feud between Musk and Altman

The disagreement over Stargate isn't the first time Elon Musk and Sam Altman have had issues. Their tension started when they both co-founded OpenAI, an artificial intelligence company. Musk was initially an investor and board member, but problems arose when OpenAI decided to move away from being a nonprofit research lab. Musk believed OpenAI should focus on research that benefits the public, not making profits.

In 2023, Musk took legal action against OpenAI, saying the company was no longer sticking to its nonprofit mission and was instead focusing on money-making. He felt this was a betrayal of the original goals of OpenAI. The fight is ongoing, and Musk is now trying to stop OpenAI from fully turning into a for-profit business. A court hearing in California is scheduled for February 2025 to continue addressing these issues.

In the middle of his disagreement with OpenAI, Musk started his own AI company called xAI to compete with OpenAI. The company is building a big data centre in Memphis, Tennessee, to develop advanced AI models. Musk has become more critical of OpenAI, especially because OpenAI works closely with Microsoft. Microsoft provides a lot of the computing power needed to run AI projects like ChatGPT.

Musk is worried that xAI is being treated unfairly in the market because OpenAI gets so much help from Microsoft. This has made the conflict between Musk and Altman even worse.

What is Stargate?

The Stargate project was first mentioned in March 2024 by The Information, a technology news website, but it had been in development for a while before Trump publicly discussed it. The main goal of Stargate is to create large data centres that can handle the huge amount of computing power needed for AI technology. OpenAI, Oracle, and SoftBank are working together to fund this project. They are also focusing on building energy systems, especially using renewable sources like solar power.

A key part of the Stargate project is its use of green energy. Two energy companies, Crusoe Energy Systems and Lancium, are partnering to create a system that runs on renewable energy. This approach is meant to keep costs low while meeting the increasing demand for data and AI technology. The project will also take advantage of Texas’s natural resources, including oil, gas, and wind power. However, Trump recently paused approval for new wind energy projects on federal lands.

The Abilene AI data centre

A major part of the Stargate project is the AI data centre being built in Abilene, Texas. This data centre was announced in July 2024 by Crusoe Energy Systems, with a large investment behind it, although the exact investors were not named. The Abilene centre is just the start of the Stargate project, and there are plans for many more data centres.

In addition to the Abilene Centre, Larry Ellison from Oracle mentioned that the project aims to build 10 data centres, with the possibility of expanding to as many as 20 in the future. The goal is to create the infrastructure needed to support and run future AI models.

Microsoft’s role and concerns

In Trump’s announcement about the Stargate project, Microsoft was noticeably absent. Microsoft has been an important partner for OpenAI for a long time. While Microsoft did confirm that it is also investing in the Stargate project, it highlighted that its partnership with OpenAI will keep evolving. The focus of this partnership will be to help OpenAI build more infrastructure to support research and development in AI.

Microsoft CEO Satya Nadella commented on the controversy surrounding the Stargate deal, responding to Musk’s claims with humour. In a recent interview at the World Economic Forum in Davos, Switzerland, Nadella remarked, “Look, all I know is, I’m good for my $80 billion,” referring to his company’s own large-scale AI investment plans.