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Jan. 22, 2025, 5:28 p.m.
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Elon Musk and Sam Altman Clash Over Trump's Stargate AI Project

Brief news summary

Elon Musk and OpenAI CEO Sam Altman are clashing over the Stargate AI infrastructure initiative, recently highlighted by Donald Trump. This ambitious $500 billion project involves partnerships with OpenAI, Oracle, and SoftBank and aims to establish crucial data centers and energy sources for AI development. Trump has suggested a substantial $100 billion investment, though Musk expressed doubts on platform X, suggesting SoftBank’s actual contribution may be closer to $10 billion, thus questioning the project's feasibility. In light of this, Altman has extended an invitation to Musk to visit Texas and discuss the project further. Their public disagreement illustrates a complicated relationship: Musk, who once backed OpenAI, now criticizes its profit-centric approach while leading xAI, a competitor tied to Microsoft. Challenges have intensified since Microsoft's announcement of an $80 billion AI infrastructure plan, increasing competition in the AI sector. The Stargate project, originally slated for a 2024 debut, now faces uncertain prospects amid these developments.

Elon Musk and OpenAI CEO Sam Altman are in a dispute over the Stargate artificial intelligence infrastructure project recently promoted by President Donald Trump. This conflict is the latest chapter in their long-standing contention that began with disagreements on OpenAI's board. Trump announced a partnership involving OpenAI, Oracle, and SoftBank, aiming to invest up to $500 billion in Stargate, which is focused on developing data centers and electricity generation for AI. Musk, a longtime Trump advisor and supporter, quickly questioned the feasibility of this investment, claiming on his social media platform X that SoftBank has insufficient funding. Altman countered by inviting Musk to visit the Texas site under construction, emphasizing the project's benefits for the country. The feud traces back to Musk's lawsuit against OpenAI, alleging a betrayal of its nonprofit origins, and he is currently seeking a court order to halt the organization’s shift towards a for-profit model.

Musk has also launched his AI company, xAI, to compete against OpenAI, citing unfair advantages due to Microsoft's support of OpenAI. The Stargate initiative, reported by The Information in March 2024, seemingly predates Trump's announcement. The project also involves a partnership with Crusoe Energy Systems for a significant AI data center in Texas, utilizing renewable energy sources. During Trump’s conference, Microsoft was notably absent. While it has historically invested billions in OpenAI, Microsoft later stated it would also invest in Stargate, indicating its partnership with OpenAI will continue to evolve. Microsoft CEO Satya Nadella responded to Musk’s skepticism, humorously reaffirming his commitment to their $80 billion AI infrastructure expansion, with a substantial portion allocated in the U. S.


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