Trump’s $500Bn AI investment plan sparks Musk-Altman public clash
WASHINGTON, D.C., UNITED STATES — President Donald Trump announced Tuesday a major private sector investment of up to $500 billion aimed at building artificial intelligence infrastructure in the United States.
In a White House briefing on Tuesday, President Trump unveiled the initiative alongside tech industry heavyweights, marking a significant moment in America’s AI race.
“What we want to do is keep it in this country,” Trump said, referencing AI development. “China is a competitor, others are competitors. We want to be in this country, and we’re making it available.”
AI project details
The ambitious collaboration brings together OpenAI, SoftBank, and Oracle in a venture reportedly worth $500 billion over four years. Oracle’s Larry Ellison revealed that ten data centers are already under construction in Texas, with plans for nationwide expansion. The project aims to create over 100,000 American jobs and maintain U.S. competitiveness in the global AI landscape.
Musk challenges investment claims
Despite the bold projections, billionaire Elon Musk quickly cast doubt on the scale of the investment. When OpenAI announced the project on X, stating, “We will begin deploying $100 billion immediately,” Musk responded, “They don’t actually have the money.” He further claimed that SoftBank has secured well under $10 billion for the project, adding, “I have that on good authority.”
Altman fired back at Musk, dismissing his claims as “wrong, as you surely know.” He invited Musk to visit the first Stargate site already under construction and took a dig at Musk’s own AI ventures. “I realize what is great for the country isn’t always what’s optimal for your companies,” Altman wrote.
Announcing The Stargate Project
The Stargate Project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States. We will begin deploying $100 billion immediately. This infrastructure will secure…
— OpenAI (@OpenAI) January 21, 2025
Political tensions over AI investment
Trump ally Steve Bannon weighed in on the dispute, condemning Musk’s criticism of the president’s announcement. “It’s unacceptable and unsatisfactory. You’ve seen how out of control he is,” Bannon stated, revealing long-standing tensions between Trump’s circle and the tech entrepreneur.
The project’s ambitious scope and the public clash between tech leaders underscore the high stakes in America’s AI development race, even as questions about its funding structure remain contentious.
