Says Stargate AI plan lacks funding

Elon Musk claimed Tuesday night that tech giants OpenAI, Oracle and Softbank don’t have enough cash to fulfill their high-profile pledge to invest $500 billion in US artificial intelligence infrastructure.

The Tesla and SpaceX chief made the comments hours after President Donald Trump unveiled the massive project at the White House on his first full day in office.

“They don’t actually have the money,” Musk wrote in response to an OpenAI post on his social platform X about the new venture, dubbed the Stargate project.

“SoftBank has secured well under $10B. I have that on good authority,” Musk added in a subsequent post.

By far Trump’s biggest financial backer in the 2024 election, Musk is currently leading a major White House efficiency effort.

On Wednesday morning, OpenAI CEO Sam Altman responded directly to Musk.

“I truly respect your accomplishments and believe you are the most inspiring entrepreneur of our time,” Altman wrote on X.

Still, Musk’s claim about Softbank’s liquidity was “wrong, as you surely know,” Altman wrote in a follow-up post.

“I realize what’s great for the country isn’t always what’s best for your businesses, but in your new role, I hope you’ll mostly put (American flag emoji) first,” he added.

OpenAI and Oracle did not immediately respond to CNBC’s requests for comment on Musk’s claim. Softbank declined to comment.

Musk’s comments about Softbank were “way off base,” according to a person familiar with the AI ​​project, who spoke on condition of anonymity to discuss the situation.

“There’s no question” that Musk’s testy relationship with Altman was the catalyst for his Stargate post, the person added.

Musk’s comments undermined Trump’s announcement Tuesday afternoon that Stargate “will invest at least $500 billion” and create “over 100,000 American jobs almost immediately.”

“I think it’s going to be something that’s very special. It’s going to lead to something that could be the biggest of all,” Trump said.

As he spoke, Trump was flanked by Altman, Oracle co-founder Larry Ellison and Softbank CEO Masayoshi Son.

Ellison said at the event that 10 data centers, each 500,000 square feet, were already under construction in Abilene, Texas, and that 10 more are in the works.

CNBC has also learned that Trump spoke by phone with Altman last week. Their “long” conversation focused on AI’s potential to improve people’s lives and on the importance of building its infrastructure in the US and not in China.

Musk, who heads Trump’s new government efficiency advisory, DOGEhas a tense relationship with Altman.

In March, Musk and his AI startup, xAI, sued OpenAI, alleging breach of contract. Musk later dropped the case and in August sued Altman in federal court.

Altman’s response to X matches the tone he has taken toward Musk in public in the past.

“I could be proven wrong, but I have a pretty strong belief that Elon will do the right thing,” Altman said in December when asked if he was concerned about how Musk might wield his influence from the White House .

OpenAI said in Tuesday’s statement at X that Stargate “will begin deploying $100 billion immediately.”

Son will chair the new company, whose original equity backers include SoftBank, OpenAI, Oracle and UAE-based lender MGX, according to the post.

News of the infrastructure initiative sent Oracle shares up 7% on Tuesday.

OpenAI’s submissions are also listed Microsoft as one of its key initial technology partners in Stargate. The company said earlier in January that it plans to invest $80 billion in the next fiscal year in AI-enabled data centers.

Asked Wednesday on CNBC’s “Squawk Box” about Stargate, Microsoft CEO Satya Nadella said, “I’m not very into the details of what they’re investing.”

When asked about Musk’s comments questioning Stargate’s funding, Nadella replied, “Look, all I know is that I’m good for my $80 billion.”

— CNBC’s Kate Rooney contributed reporting