Elon Musk and Sam Altman Stargate Feud: Social Media Battle

Dispute Erupts Between Elon Musk and Sam Altman Over OpenAI's Stargate Project

A public disagreement has unfolded on the social media platform X between Elon Musk, the billionaire entrepreneur, and Sam Altman, CEO of OpenAI, concerning the Stargate initiative.

Details of the Stargate Infrastructure Project

Stargate is a large-scale infrastructure undertaking designed to establish data centers for OpenAI throughout the United States. The project was unveiled on Tuesday during a press briefing held at the White House.

It is anticipated that Stargate could attract up to $500 billion in investment from sources including SoftBank and the Middle East AI fund, MGX, to facilitate the data center construction necessary for supporting OpenAI’s artificial intelligence operations.

Initial commitments from Stargate partners total $100 billion, with a portion allocated to a data center currently being built in Abilene, Texas.

Musk's Allegations Regarding Funding

Elon Musk has asserted that Stargate does not possess the financial resources it claims to have.

In a series of posts on X on Tuesday, Musk stated, “They don’t actually have the money.” He further claimed, “SoftBank has well under $10 billion secured. I have that on good authority.”

Later, responding to criticism directed at Altman, Musk characterized him as “a swindler.”

Context of the Dispute: Competition and Legal Challenges

It is important to note that Musk is not an impartial observer. He leads his own AI company, xAI, which directly competes with OpenAI and is currently involved in a legal dispute with the organization.

The lawsuit filed by xAI and Musk alleges OpenAI engaged in anticompetitive behaviors, specifically discouraging investment in rival AI companies.

Altman's Response and Defense of Stargate

Sam Altman responded to Musk’s claims on Wednesday via a post on X, challenging his assertions.

“Wrong, as you surely know,” Altman replied to Musk’s allegation concerning SoftBank’s capital. He added, “[Stargate] is great for the country. 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 [US] first.”

Altman also expressed respect for Musk, stating, “I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time.” He conceded, “I don’t think [Musk is] a nice person or treating us fairly, but you have to respect the guy, and he pushes all of us to be more ambitious.”

Musk's Government Role and Infrastructure Needs

Musk is currently leading the Department of Government Efficiency (DOGE), a U.S. government advisory commission tasked with recommending reductions in federal spending.

The DOGE commission was initially announced last year and was formally established through an executive order issued by President Donald Trump on Monday, though it is currently facing legal challenges.

Similar to OpenAI, xAI requires substantial infrastructure to support the development of its AI systems. It is estimated that Musk’s company has already invested $12 billion in its data center located in Memphis, with potential for further investment in upgrades.

Microsoft's Position and Investment

During an interview at the World Economic Forum in Davos, Satya Nadella, CEO of Microsoft—a significant collaborator and investor in OpenAI—declined to comment on Musk’s posts.

Nadella stated, “All I know is, I’m good for my $80 billion,” referencing Microsoft’s recent commitment to invest a record amount in AI data centers this year.

Musk responded on Wednesday, “On the other hand, Satya definitely does have the money.”

Nadella concluded with, “And all this money is not about hyping AI, but is about building useful things for the real world!”