Cover Image for Elon Musk and Sam Altman argue on social media over Stargate.
Thu Jan 23 2025

Elon Musk and Sam Altman argue on social media over Stargate.

Elon Musk and Sam Altman, CEO of OpenAI, are in disagreement on X regarding Stargate, an infrastructure project aimed at building data centers for OpenAI in the United States.

Elon Musk, the billionaire and CEO of xAI, and Sam Altman, the director of OpenAI, are embroiled in a dispute on the X platform regarding the Stargate project. This ambitious plan, recently presented at a conference at the White House, aims to build data centers for OpenAI at various locations across the United States, with a projected investment that could reach $500 billion. Investors such as SoftBank and the MGX fund from the Middle East have expressed interest in funding this project, and partners have initially promised $100 billion, part of which will be allocated to a data center being constructed in Abilene, Texas.

However, Musk has expressed doubts about the project's financial viability, stating that "they really don't have the money" they claim to possess. In his comments, the entrepreneur alleged that SoftBank has less than $10 billion secured, basing his claim on information from reliable sources. In this regard, Musk did not hesitate to label Altman a "fraud" in one of his posts.

It is important to mention that Musk is not in an impartial position, as his company xAI is directly competing with OpenAI and is currently involved in a lawsuit accusing OpenAI of anti-competitive practices, including discouraging investors from supporting competitors in the AI sector.

In response, Altman defended the Stargate project in a post, reaffirming that it is beneficial for the country and suggesting that Musk's vision could be influenced by his business interests. He acknowledged Musk's contributions but also emphasized that he does not consider him a fair person in dealing with them.

Additionally, Musk leads the Department of Government Efficiency (DOGE), an advisory committee for the U.S. government that recommends significant cuts to federal agencies. This body, announced last year and officially established recently by a decree from President Donald Trump, faces several legal challenges.

On its part, xAI, like OpenAI, also requires infrastructure for the development of its artificial intelligence systems. It is estimated that Musk's company has invested $12 billion in its sole data center in Memphis and could spend billions more on upgrades.

In an interview at the World Economic Forum, Microsoft CEO Satya Nadella, aware of the controversy, avoided commenting on Musk's tweets, highlighting the strength of his company's investment commitment, which totals $80 billion for AI data centers this year.