Musk undercuts Trump on Stargate AI investment announcement

Elon Musk claimed overnight Tuesday that tech giants OpenAI, Oracle and Softbank don’t have enough money to fulfill their high-profile pledge to invest $500 billion in U.S. artificial intelligence infrastructure.

The Tesla and SpaceX CEO made the comment just hours after President Donald Trump unveiled the massive project at the White House on his first full day in office.

“They don’t actually have the money,” Musk wrote in response to an OpenAI post on his social platform X about the new venture, dubbed the Stargate project.

“SoftBank has well under $10B secured. I have that on good authority,” Musk added in a subsequent post.

Trump’s biggest financial backer by far in the 2024 election, Musk currently chairs a major White House government efficiency effort.

On Wednesday morning, OpenAI CEO Sam Altman replied directly to Musk.

“I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time,” Altman wrote on X.

Yet Musk’s claim about Softbank’s liquidity was “wrong, as you surely know,” Altman wrote in a follow-up post.

“I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put [American flag emoji] first,” he added.

OpenAI and Oracle did not immediately respond to CNBC’s requests for comment on Musk’s claim. Softbank declined to comment.

Musk’s post about Softbank was “far off base,” according to a person familiar with the AI project, who was granted anonymity to discuss the situation.

“There’s no doubt” that Musk’s testy relationship with Altman was the catalyst for his posts about Stargate, the person added.

Musk’s comments undermined Trump’s announcement Tuesday afternoon that Stargate “will invest $500 billion at least” and create “over 100,000 American jobs almost immediately.”

“I think it’s going to be something that’s very special. It’ll lead to something that could be the biggest of all,” said Trump.

As he spoke, Trump was flanked by Altman, Oracle co-founder Larry Ellison and Softbank CEO Masayoshi Son.

Ellison said at that event that 10 data centers, each 500,000 square feet, were already under construction in Abilene, Texas, and that 10 more are in the works.

CNBC has also learned that Trump spoke by phone with Altman last week. Their “lengthy” conversation focused on the potential of AI to improve people’s lives, and on the importance of building its infrastructure in the United States, and not in China.

Musk, who leads Trump’s new government efficiency advisory board, DOGE, has a tense relationship with Altman.

In March, Musk and his AI startup, xAI, sued OpenAI, alleging breach of contract. Musk later dropped that suit and in August sued Altman in federal court.

Altman’s response on X matches the tone he has previously taken toward Musk in public.

“I may turn out to be wrong, but I believe pretty strongly that Elon will do the right thing,” Altman said in December, when asked if he was concerned about how Musk might wield his White House influence.

OpenAI said in Tuesday’s statement on X that Stargate “will begin deploying $100 billion immediately.”

Son will be chairman of the new company, whose initial equity funders are SoftBank, OpenAI, Oracle, and the UAE-based lender MGX, according to the post.

News of the infrastructure initiative sent Oracle shares 7% higher Tuesday.

OpenAI’s post also listed Microsoft as one of its key initial technology partners in Stargate. The company said earlier in January that it plans to invest $80 billion in the next fiscal year on AI-capable data centers.

Asked Wednesday on CNBC’s “Squawk Box” about Stargate, Microsoft CEO Satya Nadella said, “I’m not particularly in the details on what they’re investing.”

When asked about Musk’s posts questioning Stargate’s funding, Nadella replied, “Look, all I know is, I’m good for my $80 billion.”

— CNBC’s Kate Rooney contributed reporting