Key Takeaways.
Elon Musk questioned SoftBank’s financial capability, resulting in a public spat between him and OpenAI CEO Sam Altman.
Only hours after Trump announced Stargate with the top members from OpenAI, SoftBank and Oracle, Elon Musk took it upon himself to challenge the legitimacy of the investment that the investors had made.
Stargate, a $500 billion AI project, is expected to bring the physical and virtual AI to the next level. Companies have already invested $100 billion in order to get the project going.
Musk claims that the backers don’t “have the money” required
SoftBank is well under $10B. Elon Musk said on X that he had “good authority”to say this shortly after the announcement of the largest investment in AI. This led to a series of sarcastic Xeets. Elon Musk exchanged sarcastic Xeets with Sam Altman, the CEO of Open AI.
The CEO of OpenAI who was at the White House with Donald Trump the day of Stargate’s launch responded to Musk’s remarks by saying, “Wrong as you surely already know.” Want to visit the first site that is already underway?
This site is a Data Center currently under construction in Abilene Texas. “[Stargate] will be great for the country. Altman responded to Musk’s tweet by writing, “I realize that what is good for the country may not always be what is best for your companies. But in your new role, I hope you will put [America] before all else.” Altman added a sweet note later, saying that he admires Musk’s achievements [and is of the opinion]that he is the most inspirational entrepreneur.
Although I don’t believe [Musk is] is a nice person, or treating us fairly. But you have to respect him, and he encourages us all to be more ambitious. Sam Altman
Trump responded to Elon’s comments by saying that the criticism wasn’t an indictment on the viability of the deal and was instead a clear case where Altman had a bad relationship with another member of this deal.
Then he clarified that he didn’t know whether they did [have the funds]but they were putting money up. They’re rich people, so they should do.
The Real Context Behind This Fiasco Elon’s xAI, which is building its own data center in Memphis Tennessee, continues to escalate the controversy by adding new claims and asking for a judge to order OpenAI to stop converting to a for-profit company.
Musk has in the past openly stated that he feels his company is unfairly competing with OpenAI because the latter has a greater pool of computing resources. xAI, too, is looking for infrastructure in order to develop its AI systems.
The Ground Reality
A source familiar with Stargate has said that the assertion was not true. According to its latest earnings, Softbank had $24.3 billion in cash and is willing to take on debt for the project.
In addition, Oracle’s balance sheet has $11 billion of cash MGX has committed $100 billion to capital, and OpenAI announced recently that it has more than 10 billion dollars from its recent round venture capital funding. Add Techreport into your Google News Feed
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Vlad is Tech Report’s Executive Editor. With over a decade of experience in tech content, he’s passionate about computer hardware, an advocate of online privacy, and strongly believes in the open-source, scarce-money nature of cryptocurrency. When he’s not working, he’s traveling with his partner and their cat, learning Python, or reading good books. He never owned a PC he did not build.
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