When OpenAI’s Sam Altman announced the Stargate Project which will invest $500 billion over the next 4 years in new AI infrastructure in the US — with SoftBank, Oracle, and MGX — Elon Musk on Wednesday said: “they don’t actually have the money”.
According to an OpenAI statement they will deploy $100 billion immediately. “This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. This project will not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of America and its allies,” said the ChatGPT maker.
The initial equity investors in Stargate are SoftBank, OpenAI, Oracle, and MGX. Japanese conglomerate SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility. Masayoshi Son will be the chairman.
Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the initial technology partners. Responding to this, the xAI owner Musk said they don’t have this kind of money to build such a product.
In another tweet, Musk supported an X user who said “OpenAI and Microsoft are done”. “Seems to be the case,” said the richest man in the world. According to OpenAI, the buildout is already underway, starting in Texas, and “we are evaluating potential sites across the country for more campuses as we finalise definitive agreements”.
“As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle,” the company posted on X.
The announcement was made at a press conference at the White House on Tuesday where President Trump talked about infrastructure investment.
