The xAI owner Elon Musk and OpenAI CEO Sam Altman are engaged in a public dispute on X over Stargate, an ambitious infrastructure project aimed at building data centers for OpenAI across the US.

On Tuesday, OpenAI announced its partnership with SoftBank and Oracle to construct multiple AI-focused data centers in the United States. The companies are expected to initially commit $100 billion to the Stargate project, with plans to invest a total of $500 billion over the next four years.

“SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility,” the joint statement noted.

However, Musk responded on X with skepticism, claiming, “They don’t actually have the money.” Musk further alleged, “SoftBank has well under $10B secured. I have that on good authority.”

Altman quickly fired back, replying on Wednesday, “Wrong, as you surely know,” in response to Musk’s claims about SoftBank’s financial situation. Altman also emphasized that Stargate is beneficial for the country, adding, “I realise 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 in need of significant infrastructure to develop their AI systems. Musk’s company, xAI, is estimated to have spent $12 billion on its single data center in Memphis and could invest even more to upgrade the facility, according to a report by TechCrunch.

Musk, an early investor and former board member of OpenAI, sued the company last year, accusing it of betraying its original nonprofit research mission in favor of pursuing profits. He has since intensified the dispute, adding new claims and requesting a court order to halt OpenAI’s efforts to transition more fully into a for-profit entity. A hearing is set for early February in a California federal court.

In addition to his other ventures—Tesla, SpaceX, and X—Musk launched his own AI company, xAI, which is constructing a major data center in Memphis, Tennessee.

Tech news outlet The Information first reported on the Stargate project in March 2024, suggesting it had been in the works long before the announcement by Trump.

Another company, Crusoe Energy Systems, also announced a project last July to build a large AI data center outside Abilene, Texas, in collaboration with energy technology company Lancium. Crusoe and Lancium stated that the project would be powered by renewable energy sources like nearby solar farms.

It remains unclear how or when Crusoe’s project became part of the first phase of the Stargate investment unveiled by Trump.