AI Infrastructure Project Stargate Draws Scrutiny and Sparks Feud
Elon Musk and OpenAI CEO Sam Altman engage in a public dispute over the Stargate artificial intelligence infrastructure project, championed by former President Trump.
Trump's Announcement and Musk's Doubts
Trump unveiled a joint venture between OpenAI, Oracle, and SoftBank to invest up to $500 billion in Stargate for the development of AI technology. Musk, a close Trump advisor, questioned the investment's value, alleging that SoftBank lacked the necessary funds.
Altman's Response and Underlying Feud
Altman disputed Musk's claims and invited him to visit the under-construction Stargate data center in Texas. Behind this public dispute lies a long-standing feud between Musk and Altman, stemming from a boardroom rivalry at OpenAI.
Musk's Rival AI Venture and Allegations
Musk has launched his own AI company, xAI, and alleges unfair competition from OpenAI and its partner Microsoft. He has filed a lawsuit against OpenAI, claiming betrayal of its non-profit mission and plans to convert to a for-profit entity.
Stargate's Origins and Microsoft's Role
The roots of Stargate date back to March 2024, when Tech news outlet The Information reported on an OpenAI data center project. Crusoe Energy Systems later announced a large AI data center project outside Abilene, Texas, powered by renewable energy. Microsoft, a major investor in OpenAI, has partnered on Stargate but emphasized the evolution of its OpenAI relationship to support research and training.
Nadella's Response to Musk's Comments
Microsoft CEO Satya Nadella responded to Musk's skepticism by highlighting their own $80 billion investment in global AI infrastructure, including $50 billion allocated to the United States.