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 ā€œStargate,ā€ has intensified the rivalry between Donald Trump’s adviser Elon Musk and OpenAI CEO Sam Altman. The deal, reportedly in the works months before Trump’s presidential victory, raises questions about the motivations behind the partnership and its alignment with Trump’s economic vision.

Stargate Plans Predate Trump’s Election Victory

OpenAI spokeswoman Liz Bourgeois confirmed that discussions about Stargate began as early as March, ten months before Trump’s return to the White House. OpenAI and Oracle finalized a partnership in June to build one of Stargate’s 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 Trump’s election victory as a catalyst. ā€œWe wouldn’t be able to do this without you, Mr. President,ā€ Altman remarked during the announcement, positioning the project as emblematic of Trump’s promise of a ā€œgolden 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.

ā€œThey don’t actually have the money,ā€ Musk wrote to his 214 million followers. ā€œSoftBank has well under $10B secured. I have that on good authority.ā€ Altman responded, inviting Musk to visit the construction site to verify the project’s 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 Trump’s 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 Trump’s 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 Trump’s role, asserting, ā€œPresident Trump is the only person who could have put these deals together.ā€

Musk’s Criticism and Speculation

Musk’s criticism of Stargate’s funding raises questions about his own ties to Trump. Some analysts speculate that Musk’s support for Trump’s 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 Trump’s 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 project’s success—and its role in shaping the U.S. economy under Trump’s leadership—remains 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.

šŸ‘‰ Stay informed with real-time updates and in-depth analysis at NewsLink7.com. Fact-checked news that matters. Follow us 24/7, 365 days. There are no sides, just the truth. Explore more stories and stay ahead with NewsLink7.com.