The announcement of a $500 billion AI infrastructure initiative has triggered a public spat between two of the technology sector's most prominent figures, with OpenAI's chief executive Sam Altman directly rebutting criticism from Elon Musk, the founder of rival firm xAI.
The project, named Stargate, was unveiled earlier this week as a joint venture involving OpenAI, SoftBank, Oracle, and MGX, an investment vehicle backed by the United Arab Emirates. The partners have committed an initial $100 billion, with plans to expand total investment to $500 billion over the next four years. President Donald Trump presented the deal as a cornerstone of his administration's technology policy.
Musk, who has served as a close adviser to Trump, took to social media to question whether the participating companies possessed the necessary capital, writing that they did not “actually” have the funds. Altman responded in a post on the same platform, asserting that Musk's claim was incorrect and inviting him to visit the first construction site already underway. “This is great for the country,” Altman wrote, adding that he hoped Musk would prioritize American interests over his own corporate concerns.
The exchange is the latest chapter in a long-running feud between the two billionaires, who co-founded OpenAI before Musk departed amid reported disagreements. Musk subsequently launched xAI in 2023, positioning it as a direct competitor. The Stargate announcement conspicuously omitted xAI from the list of participants, a detail that analysts suggest may have fueled Musk's skepticism.
OpenAI has touted the project as a means to secure American leadership in artificial intelligence, create hundreds of thousands of jobs, and support national security. Kevin Weil, the company's chief product officer, told the Wall Street Journal at the World Economic Forum in Davos that additional computing power would lead to better models and improved products. However, the company has not detailed its specific role in the infrastructure build-out, and Weil did not rule out the possibility of OpenAI entering the chipmaking sector.
The Stargate venture represents a substantial financial gamble. If generative AI proves profitable, the investment could yield significant returns; if not, the losses could be considerable. The project's success may also depend on the ability of the Trump administration to manage the competing interests of Musk and Altman, both of whom wield considerable influence in the tech industry and beyond.
Despite the sharp tone of his rebuttal, Altman acknowledged Musk's achievements, describing him as “the most inspiring entrepreneur of our time.” The remark suggests a degree of grudging respect beneath the public sparring, even as the two continue to vie for dominance in the rapidly evolving AI landscape.