Elon Musk and Sam Altman Clash Over Stargate Project on Social Media
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Synopsis
The clash between Elon Musk and Sam Altman over the Stargate infrastructure project reveals tensions in the AI sector, with Musk questioning SoftBank's financial backing, while Altman defends the initiative as beneficial for the U.S.
Key Takeaways
- Elon Musk and Sam Altman are in a social media dispute over the Stargate project.
- OpenAI has partnered with SoftBank and Oracle for AI data centers.
- The project expects an initial investment of $100 billion.
- Musk claims SoftBank lacks sufficient funds for the project.
- Altman argues that Stargate is beneficial for the country.
San Francisco, Jan 23 (NationPress) The xAI owner Elon Musk and OpenAI CEO Sam Altman are engaged in a dispute on X regarding Stargate, a monumental infrastructure initiative aimed at establishing data centers for OpenAI throughout the United States.
OpenAI announced on Tuesday its partnership with SoftBank and Oracle to create several AI data centers across the U.S., as reported by Xinhua.
The organizations anticipate an initial commitment of $100 billion to Stargate, with plans to invest up to $500 billion over the next four years.
According to their joint statement, SoftBank will take the lead in financing the project, while OpenAI will manage operations.
Musk responded to the announcement with a series of posts on X, claiming, “They don’t actually have the money.”
He further asserted, “SoftBank has well under $10B secured. I have that on good authority.”
In a response posted on X the following day, Altman countered Musk’s claims saying, “Wrong, as you surely know.”
Altman emphasized that Stargate is beneficial for the nation, stating, “I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role, I hope you’ll mostly put America first.”
Both xAI and OpenAI are vying for infrastructure to enhance their AI capabilities.
Reports suggest that Musk's company has already invested $12 billion in its single data center located in Memphis and may spend significantly more on upgrades.
Having been an early investor and board member at OpenAI, Musk previously sued Altman’s organization, accusing it of straying from its initial mission as a nonprofit dedicated to public welfare.
Since then, the conflict has escalated, with Musk introducing new claims and seeking a court injunction to halt OpenAI’s transition to a more profit-driven model. A hearing is scheduled for early February in a federal court in California.
The world’s richest individual, whose ventures include Tesla, SpaceX, and X, launched his own competing AI firm, xAI, last year, which is also constructing a large data center in Memphis, Tennessee.
The Information first reported on the Stargate data center project in March 2024, indicating that discussions had begun prior to Trump’s announcement.
Additionally, Crusoe Energy Systems revealed in July that it would establish a large, specially designed AI data center near Abilene, Texas, in collaboration with energy technology company Lancium.
While Crusoe and Lancium announced that the venture was backed by a multibillion-dollar investment, they did not disclose the funding sources.
AI technology necessitates substantial energy for its development and operation, and both firms have stated that the project will be powered by renewable energy sources, including nearby solar farms, aiming to “deliver the maximum amount of green energy at the lowest possible cost.”
Crusoe will oversee the ownership and development of the facility.
It remains uncertain how and when this project became the initial phase of the Stargate investment initially disclosed by Trump.
