Musk downplays Trump’s Stargate AI investment announcement

Elon Musk said on Tuesday night that tech giants OpenAI, Oracle and Softbank don’t have enough cash to meet their high-profile pledge to invest $500 billion in US AI infrastructure.

The Tesla and SpaceX CEO made the comments just hours after President Donald Trump unveiled the massive project on his first day in the White House.

“They don’t really have the money,” Musk responded in an OpenAI post on his social platform X about the new innovation, dubbed the Stargate project.

“SoftBank is safe under $10B. I have that on good authority,” Musk added.

On Wednesday morning, OpenAI CEO Sam Altman responded directly to Musk.

“I truly respect your accomplishments and think you are one of the most inspiring entrepreneurs of our time,” Altman wrote. He did not address Musk’s allegations against Stargate’s funding.

Softbank, OpenAI and Oracle did not immediately respond to CNBC’s requests for comment on Musk’s claims.

Musk’s comments undermined Trump’s announcement Tuesday afternoon that Stargate would “invest at least $500 billion” and “create more than 100,000 American jobs immediately.”

“I think it’s going to be something very special. It’s going to lead to something more powerful,” Trump said.

Trump was flanked by Altman, Oracle founder Larry Ellison and SoftBank CEO Masayoshi Son as he spoke.

Ellison said at that event that 10 data centers of 500,000 square feet each are under construction in Abilene, Texas, and 10 more are in the works.

Musk, who chairs Trump’s new Government Efficiency Advisory Board; DougHe has a close relationship with Altman.

In March, Musk and his AI startup xAI sued OpenAI for breach of contract. Musk later dropped that lawsuit and sued Altman in federal court.

Altman’s response to X matches the tone he’s taken publicly toward Musk in the past.

“I may be wrong, but I firmly believe that Elon will do the right thing,” Altman said in December when asked how Musk might use his White House influence.

OpenAI said in Tuesday’s X statement that Stargate “will start deploying $100 billion immediately.”

Son will be chairman of the new company, whose initial equity backers include SoftBank, OpenAI, Oracle and United Arab Emirates lender MGX, according to the filing.

News of the infrastructure initiative sent Oracle shares up 7% on Tuesday.

The OpenAI post is also listed. Microsoft As one of the key early technology partners at Stargate. The company said earlier this month that it plans to invest $80 billion in AI-enabled data centers in the next fiscal year.

When asked about Stargate on CNBC’s “Squawk Box” Wednesday, Microsoft CEO Satya Nadella said, “I’m not on the list of where they’re investing specifically.”

Asked about Musk’s posts asking for Stargate funding, Nadella replied, “All I know is, I’m good for $80 billion.”