Musk Blasts Trump-backed Stargate AI Project, Suggests OpenAI Deal is in Bad Faith

In a stunning twist in the escalating AI wars, Elon Musk, the billionaire entrepreneur and co-founder of OpenAI, has cast doubt on the legitimacy of the recently announced Stargate Project—a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, and SoftBank. Musk, who has long been a prominent figure in the world of artificial intelligence, publicly criticized the project in a Twitter thread, raising questions about its financial backing and broader implications.

The Stargate Project, unveiled by President Donald Trump, promises to invest half a trillion dollars over four years to build cutting-edge AI infrastructure in the United States. With plans to create over 100,000 jobs and initial investments in data centers in Texas, the initiative has been hailed by some as a transformative move for the country’s AI capabilities. However, Musk’s recent comments suggest a much more fraught narrative behind the scenes.

In his response to OpenAI’s announcement on X (formerly Twitter), Musk wrote, “They don’t actually have the money,” casting immediate doubt on the project’s financial viability. Hours later, he doubled down, claiming, “SoftBank has well under $10B secured. I have that on good authority.” Musk’s assertions, coming from someone with deep ties to both the tech and political arenas, are hard to dismiss as mere speculation.

This criticism adds a new layer of complexity to Musk’s already convoluted relationship with OpenAI and its leadership. Musk is currently suing OpenAI and CEO Sam Altman, accusing the organization of abandoning its original mission of prioritizing the public good in favor of a profit-driven model. Meanwhile, Musk himself has become a major supporter of President Trump, even leading the newly created Department of Governmental Efficiency. Given that Stargate is Trump’s flagship AI initiative, Musk’s public criticism is a perplexing move that raises questions about his motives and allegiances.

Adding further intrigue is Musk’s close relationship with Oracle co-founder Larry Ellison, another key player in the Stargate deal. Ellison has been a staunch ally of Trump and an influential force in the tech world. Musk’s willingness to criticize a project involving Ellison, alongside his legal battle with OpenAI, suggests that the billionaire’s AI ambitions may now take precedence over even his political and personal alliances.

It’s also worth noting that Musk’s AI company, xAI, stands to compete directly with the Stargate initiative. The deployment of $100 billion in AI infrastructure by OpenAI, Oracle, and SoftBank could pose a significant challenge to Musk’s own endeavors in the field. By publicly questioning Stargate’s financial backing, Musk could be positioning himself as a skeptic of the initiative’s feasibility, potentially undermining confidence in what would be a major competitor.

The AI wars are clearly entering a new phase, one where political alliances, corporate rivalries, and personal vendettas blur the lines between progress and chaos. Musk’s vocal criticism of Stargate highlights just how fractured the tech world has become, with competing visions for the future of AI often clashing in dramatic and public ways.

At its core, Musk’s comments raise an unsettling question: Can the Stargate Project, with its lofty ambitions and political backing, actually deliver on its promises? Or is this, as Musk implies, another example of big talk and little substance? With the stakes in AI innovation growing higher by the day, these questions aren’t just academic—they could shape the future of global technological power.

For now, Musk’s remarks serve as a reminder that in the cutthroat world of AI development, even billion-dollar deals aren’t immune to scrutiny. Whether Stargate proves to be a transformative leap or an overhyped misstep, one thing is clear: the AI wars are far from over, and Musk remains one of its most unpredictable players.