Shortly after President Donald Trump unveiled a significant new AI infrastructure investment from the White House, “First Buddy” Elon Musk attempted to undermine it. “They don’t actually have the money, ” Musk posted on his social media platform, X. “SoftBank has well under $10B secured. I have that on good authority. ” Trump announced that the investment would lead to the establishment of a company named Stargate, aimed at expanding artificial intelligence infrastructure in the United States. During the announcement, leaders from SoftBank, OpenAI, and Oracle were present. Together, these companies plan to invest a total of $100 billion initially, with intentions to increase that amount to as much as $500 billion for Stargate over the coming years. Musk's comments represent a significant critique of a major White House initiative, especially from someone within Trump’s close circle. Musk indicated his involvement in the administration's early days by mentioning he was in the Oval Office on Tuesday when Trump pardoned Ross William Ulbricht, the founder of the dark web marketplace SilkRoad. He had also sent a senior staffer from his companies, SpaceX and X, to assist in securing the release of individuals convicted for participating in the January 6 riots, following Trump’s blanket pardon. Moreover, it’s not surprising that Musk is challenging an OpenAI project.

He is currently embroiled in a lawsuit against OpenAI and its CEO Sam Altman, who attended the announcement. Musk has expressed distrust towards Altman, claiming in the lawsuit that ChatGPT has deviated from its original nonprofit purpose by reserving its most advanced AI technologies for private clients. While the companies involved in Stargate have yet to reveal the specifics of how they will provide funding, it's important to note that they don’t necessarily need the full amount secured upfront; they may opt to raise debt or attract additional equity investors. In response to Musk’s remarks, White House press secretary Karoline Leavitt defended the initiative in a Fox News interview, asserting, “The American people should trust President Trump and the words of those CEOs. ” “President Trump is very excited about this infrastructure announcement related to AI, a rapidly growing sector where the United States needs to maintain its competitive edge against adversaries like China, ” Leavitt stated. “So, the American people should take President Trump and those CEOs’ words to heart –these investments are coming to our great country, bringing American jobs with them. ” Sam Altman directly countered Musk’s claim on X, saying, “Wrong, as you surely know. Want to visit the first site already underway?This is a positive development for the country. I understand that what benefits the country isn’t always optimal for your companies, but I hope you’ll primarily prioritize (America) in your new role. ” A source close to Stargate refuted Musk’s assertion, stating that SoftBank has $24. 3 billion in cash on hand according to its latest earnings and is open to taking on more debt to support the project, with the capability to access additional capital. The source also noted that MGX has $100 billion in capital commitments, Oracle possesses $11 billion in cash, and OpenAI recently announced it secured over $10 billion in its latest venture capital round. Satya Nadella, CEO of Microsoft, which is collaborating with OpenAI on Stargate, confirmed on CNBC Wednesday, “All I know is I’m good for my $80 billion. ” DJ Judd contributed to this report.