Elon Musk bashes the $500 billion AI project Trump announced, claiming its backers don’t ‘have the money’

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In a high-stakes showdown between tech and politics, Elon Musk has publicly criticized President Donald Trump’s ambitious $500 billion Stargate AI project, claiming its backers “don’t have the money.”

Announced from the White House earlier this week, Stargate is positioned as a massive effort to bolster America’s AI infrastructure. It’s backed by some of the biggest players in tech: SoftBank, Oracle, OpenAI, and Microsoft. The project aims to create jobs and ensure the U.S. stays ahead of global competitors like China.

But Musk, one of Trump’s close allies and a prominent figure in the tech industry, didn’t hold back. Writing on his social platform X, Musk stated, “They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority.”

What Is Stargate?

The Stargate project is envisioned as a long-term AI infrastructure initiative. It plans to deploy $100 billion initially, with a total of $500 billion in investments over the coming years. During the announcement, Trump was joined by Oracle CTO Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman, each pledging their companies’ resources.

Altman praised the initiative, calling it “great for the country.” He even invited Musk to visit the project’s first site, which is reportedly already under development. However, Musk has long been a critic of Altman and OpenAI, stemming from their legal disputes over OpenAI’s shift from a nonprofit to a for-profit model.

The Funding Debate

While Musk questions whether the project has sufficient funding, insiders say otherwise. A source familiar with Stargate pointed out that:

• SoftBank has $24.3 billion in cash reserves and access to debt.

• Oracle has $11 billion in cash.

• OpenAI recently secured over $10 billion in venture capital.

Microsoft CEO Satya Nadella, whose company is partnering with OpenAI, reassured skeptics, saying, “All I know is I’m good for my $80 billion.”

Why the Criticism?

Musk’s skepticism isn’t just about funding—it’s personal. Musk and Altman have clashed over OpenAI’s direction, with Musk accusing the company of abandoning its nonprofit mission. Additionally, Musk’s dominant position in AI through Tesla and X.AI could face competition if Stargate succeeds.

Political Implications

Trump’s announcement aligns with his broader efforts to secure America’s dominance in tech. However, critics argue that Musk’s comments could damage the initiative's credibility. White House press secretary Karoline Leavitt dismissed Musk’s remarks, urging Americans to trust the administration and the project’s backers.

What’s Next?

The Stargate project could reshape America’s role in AI innovation or become another battleground for tech billionaires and political agendas. Musk’s influence and Trump’s leadership will undoubtedly play key roles in its success—or failure.

What do you think about Musk’s criticism? Is Stargate a game-changer or a pipe dream?

Let us know your thoughts.