Michaela
U.S. President Donald Trump has introduced a $500 billion private-led initiative, “Stargate,” focused on establishing AI data centers across the country. However, Tesla CEO Elon Musk has voiced his opposition to the project.
During a press conference on January 21, President Trump revealed that the initial equity backers of the Stargate project include OpenAI, the creator of ChatGPT, along with SoftBank and Oracle. He emphasized that the initiative would generate over 100,000 jobs for Americans.
In a statement, OpenAI confirmed that SoftBank, OpenAI, Oracle, and MGX are the primary equity funders for the AI Stargate project. Meanwhile, Arm, Microsoft, NVIDIA, Oracle, and OpenAI have been designated as the key technology partners.
OpenAI clarified that $100 billion of the total $500 billion investment will be allocated immediately, with the remaining funds set to be deployed over the next four years. Masayoshi Son, the CEO of SoftBank, has been appointed as the chairman of the project.
“What we want to do is we want to keep [AI innovation] in this country,” Trump said during the conference. “China is a competitor, others are competitors. We want it to be in this country, and we’re making it available,” he added. Trump also announced that construction for the project’s infrastructure is already in progress.
Additionally, Oracle co-founder Larry Ellison emphasized that the Stargate project would lead to various applications, including advancements in managing and analyzing electronic health records, ultimately enabling significantly improved healthcare strategies.
“All of us look forward to continuing to build and develop AI — and in particular AGI — for the benefit of all of humanity. We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity,” OpenAI stated in their post.
Musk Disagrees
Following President Trump’s announcement of the Stargate project, Musk quickly shared his perspective on the initiative, signaling his skepticism about the funding and viability of the project.
“They don’t actually have the money,” Musk wrote on his social media platform X in response to OpenAI’s announcement. “SoftBank has well under $10B secured. I have that on good authority,” he added.
Musk’s comments serve as a significant critique of a major White House initiative, coming from an influential figure within Trump’s inner circle.
Musk’s criticism is not unexpected, as he and OpenAI CEO Sam Altman have been in conflict, with an ongoing lawsuit further fueling tensions between the two. Musk, who has publicly stated that he “doesn’t trust” Altman, alleges in the lawsuit that ChatGPT has diverged from its original nonprofit goals by restricting access to its most advanced AI technologies to select private clients.
Altman responded to Musk’s criticism, asserting that the Tesla CEO was mistaken and extended an invitation for him to visit the first site, which is already in progress.
White House press secretary Karoline Leavitt dismissed Musk’s remarks on Wednesday. In a Fox News interview, Leavitt emphasized that the American public should trust President Trump and the statements made by the involved CEOs.
“President Trump is very excited about this infrastructure announcement in the field of AI, which is obviously growing, and something the United States of America needs to capitalize on, because our adversaries, such as China, are very advanced in this field,” Leavitt stated.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
