The $100 Billion Artificial Intelligence Deal Sparks Feud Between Trump Adviser Elon Musk and OpenAI CEO Sam Altman
A $100 billion artificial intelligence (AI) venture, codenamed āStargate,ā has intensified the rivalry between Donald Trumpās adviser Elon Musk and OpenAI CEO Sam Altman. The deal, reportedly in the works months before Trumpās presidential victory, raises questions about the motivations behind the partnership and its alignment with Trumpās economic vision.
Stargate Plans Predate Trumpās Election Victory
OpenAI spokeswoman Liz Bourgeois confirmed that discussions about Stargate began as early as March, ten months before Trumpās return to the White House. OpenAI and Oracle finalized a partnership in June to build one of Stargateās data centers in Texas, with construction commencing over the summer.
Despite these timelines, the companies presented the initiative at the White House on Tuesday, with SoftBank CEO Masayoshi Son crediting Trumpās election victory as a catalyst. āWe wouldnāt be able to do this without you, Mr. President,ā Altman remarked during the announcement, positioning the project as emblematic of Trumpās promise of a āgolden age of America.ā
Funding Questions Cloud the Announcement
The $100 billion investment figure includes funds already spent on the ongoing construction of a 10-building data center campus in Abilene, Texas. This detail, revealed by Bourgeois, has drawn scrutiny, especially from Musk, who criticized the deal on X, the social network he owns.
āThey donāt actually have the money,ā Musk wrote to his 214 million followers. āSoftBank has well under $10B secured. I have that on good authority.ā Altman responded, inviting Musk to visit the construction site to verify the projectās progress.
Shift in Partners and Political Implications
Originally, OpenAI planned Stargate in partnership with Microsoft. However, the deal evolved to include SoftBank, Oracle, and MGX, with heightened investor enthusiasm after Trumpās election spurring the collaboration. Bourgeois acknowledged that concerns over regulatory hurdles under the previous administration had deterred earlier commitments.
A source familiar with the deal stated that the economic conditions created by Trumpās victory unified the companies around this large-scale project, which might not have been feasible as smaller, separate initiatives. White House communications director Steven Cheung emphasized Trumpās role, asserting, āPresident Trump is the only person who could have put these deals together.ā
Muskās Criticism and Speculation
Muskās criticism of Stargateās funding raises questions about his own ties to Trump. Some analysts speculate that Muskās support for Trumpās campaign might be motivated by potential benefits for his ventures, including Tesla, SpaceX, Starlink, and AI projects. These industries could see advantages from policies under Trumpās administration, such as subsidies, regulatory approvals, and expanded government contracts.
Uncertain Future Amid Feud
The public feud between Musk and Altman underscores the tension surrounding Stargate and its political and financial implications. While the venture represents a significant leap in AI infrastructure, it also highlights the complex interplay between politics, technology, and corporate ambition.
As construction progresses in Texas, the projectās successāand its role in shaping the U.S. economy under Trumpās leadershipāremains to be seen. Observers will watch closely to determine whether the promised investment delivers on its lofty goals or if the skepticism voiced by critics like Musk proves warranted.
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