OpenAI announces $500 bn AI project, Musk says ‘they don’t actually have the money’
OpenAI, led by Sam Altman, has announced the Stargate Project, which aims to invest $500 billion over the next four years to build new AI infrastructure in the US, with partnerships from SoftBank, Oracle, and MGX. However, Tesla and SpaceX CEO Elon Musk has expressed skepticism, stating that “they don’t actually have the money.”
According to an OpenAI statement, $100 billion will be deployed immediately as part of the initiative.
“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-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” said OpenAI, the maker of ChatGPT.
The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX.
SoftBank and OpenAI are the lead partners for Stargate, with SoftBank responsible for finances and OpenAI managing operations. Masayoshi Son will serve as the chairman. Key initial technology partners include Arm, Microsoft, NVIDIA, Oracle, and OpenAI.
Musk, responding to the announcement, questioned the financial capability of the project, stating they don’t have enough funds to build such a large-scale initiative. Musk also supported an X user’s comment stating that “OpenAI and Microsoft are done,” adding, “Seems to be the case.”
OpenAI has indicated that the buildout is already underway in Texas, with further campuses being evaluated across the country as they finalize 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 that began in 2016, as well as a newer partnership between OpenAI and Oracle,” the company posted on X.
The announcement was made during a press conference at the White House on Tuesday, where former President Donald Trump discussed plans for investment in US infrastructure.
