'They don't have the money': Elon Musk reacts to ChatGPT maker's $500 billion infrastructure project announcement

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OpenAI, led by Sam Altman, has announced a $500 billion AI infrastructure project called ‘Stargate’ in collaboration with SoftBank, Oracle, and MGX. Initial funding is set at $100 billion. Key partners include Arm, Microsoft, and NVIDIA. Construction has begun in Texas, with plans to expand. Elon Musk expressed skepticism about the project’s funding.

ChatGPT maker OpenAI, led by Sam Altman, has announced “Stargate,” a $500 billion project aimed at building new AI infrastructure in the US over the next four years. This initiative, backed by SoftBank, Oracle, and MGX, plans to immediately deploy $100 billion. OpenAI claims Stargate will solidify American AI leadership, generate jobs and economic benefits, and bolster national security.

SoftBank and OpenAI are leading the project, with SoftBank handling finances and OpenAI overseeing operations under Chairman Masayoshi Son. Key technology partners include Arm, Microsoft, NVIDIA, Oracle, and OpenAI itself.

OpenAI announced the project in a long post on X, formerly Twitter. Responding to the announcement post, Elon Musk, CEO of Tesla and SpaceX and owner of xAI, expressed skepticism about the project’s funding, suggesting that the necessary capital isn’t available. “They don’t actually have the money,” Musk wrote. “SoftBank has well under $10B secured. I have that on good authority,” Tesla CEO wrote in another post.

He also echoed a sentiment shared by an X user, implying that OpenAI and Microsoft’s deal may be going through rough weather. “OpenAI and Microsoft are done,” wrote a user. To this Elon Musk responded, “Seems to be the case.”

OpenAI has stated that construction has begun in Texas, with plans to evaluate additional locations nationwide as agreements are finalized. The company also highlighted its collaboration with Oracle and NVIDIA on the computing system, emphasizing pre-existing partnerships.

The announcement was made during a White House press conference where the then-President discussed infrastructure investment in the US.

TOI Tech Desk

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