Donald Trump’s $500 Billion AI Project "Stargate" Sparks Tensions Between Elon Musk and Sam Altman

US President Donald Trump has unveiled a groundbreaking $500 billion initiative called “Stargate,” aimed at establishing a cutting-edge AI infrastructure in the United States. The project will focus on building critical data centers and advancing key AI technologies, with initial backing from major companies such as SoftBank, OpenAI, Oracle, and MGX.

The venture has partnered with technology giants including Arm Holdings, Microsoft, and Nvidia. The first phase will require a $100 billion investment in infrastructure, positioning the US as a global leader in artificial intelligence development.

The announcement was made at a White House event attended by top executives, including OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle CTO Larry Ellison. Proponents of the project argue that it will secure American leadership in AI and create hundreds of thousands of jobs, in addition to supporting national security by strengthening America’s AI capabilities.

OpenAI, a primary partner, will manage the operational side of Stargate, while SoftBank will be responsible for the financial backing. Altman emphasized the importance of the project, describing it as a strategic move to safeguard America’s national security while re-industrializing the country.

However, the announcement quickly sparked controversy. After OpenAI shared details of the initiative on social media platform X, Tesla and SpaceX CEO Elon Musk publicly questioned the financial viability of the project. Musk, citing what he claimed was reliable information, stated that SoftBank had secured far less than the required investment, casting doubt on the project's ability to succeed.

In a response to Musk’s critique, Sam Altman defended the initiative, dismissing Musk’s claims as inaccurate. Altman further challenged Musk to visit one of the project's sites, asserting that work was already underway. He also reminded Musk that while certain projects may not be optimal for individual companies, Stargate was ultimately beneficial for the country.

The project, which aims to bolster US dominance in AI while addressing national security concerns, is poised to be a key player in the ongoing debate over AI's role in the global economy.