Elon Musk, in Test of His Influence With Trump, Clashes With OpenAI’s Sam Altman Over ‘Stargate’ Project

The new $500 billion venture will start building out data centers and the electricity generation needed for the further development of fast-evolving AI in Texas.

Kevin Lamarque/pool via AP
Elon Musk at the Capitol on January 20, 2025. Kevin Lamarque/pool via AP

Elon Musk is clashing with OpenAI’s chief executive, Sam Altman, over the Stargate artificial intelligence infrastructure project touted by President Trump, the latest in a feud between the two billionaires that started on OpenAI’s board and is now testing Mr. Musk’s influence with the new presidential administration.

Mr. Trump on Tuesday had talked up a joint venture investing up to $500 billion through a new partnership formed by OpenAI, the maker of ChatGPT, alongside Oracle and SoftBank.

The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House.

Mr. Trump declared it “a resounding declaration of confidence in America’s potential” under his new administration, with an initial private investment of $100 billion that could reach five times that sum.

Yet Mr. Musk, a close Trump adviser who helped bankroll his campaign and now leads a government cost-cutting initiative, questioned the value of the investment hours later.

“They don’t actually have the money,” Mr. Musk wrote on his social media platform X. “SoftBank has well under $10B secured. I have that on good authority.”

Mr. Altman responded Wednesday to say Mr. Musk was “wrong, as you surely know” and inviting Mr. Musk to come visit the first site that is already under construction.

“(T)his is great for the country. i realize 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,” Mr. Altman wrote, using a United States flag emoji to represent America.

Behind the Feud

The public clash over Stargate is part of a years-long dispute between Messrs. Musk and Altman that began with a boardroom rivalry over who should run OpenAI, which both men helped found.

Mr. Musk, an early OpenAI investor and board member, sued the artificial intelligence company last year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits.

Mr. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business more fully. 

A hearing is set in the case for early February in federal court in California.

Associated Press


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