Elon Musk challenges Stargate project’s funding: Tesla and SpaceX CEO Elon Musk has raised concerns over the financial viability of the Stargate AI project, a high-profile initiative which is approved under former US President Joe Biden.
This project is said to aim at boosting the AI infrastructure in the United States. Still, Musk questioned the involved companies with the project which includes Microsoft, Oracle, OpenAI and SoftBank- who have the financial backing to sustain it.
Musk further claimed that these tech giants reportedly lack the necessary funds, highlighting that SoftBank has raised less than USD 10 billion so far (by the time of writing).
His statements have sparked a sharp response from Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman.
Stargate AI Project: What is it?
The Stargate project, which was approved by Biden’s administration, is a USD 500 billion initiative (which is around Rs 43 lakh crore) which has been designed to accelerate AI development and infrastructure in the US.
Here are the major highlights of the project:
- Massive investment- Backed by Microsoft, OpenAI, Oracle and SoftBank
- Job creation: Expected to generate around 1 lakh jobs in the coming 4 years
- AI advancement: It aims at strengthening the US’s AI dominance
Despite its ambitious goals, Musk argues that the funding sources remain unclear, casting doubt on its feasibility.
Satya Nadella hits back at Musk’s claims
Microsoft CEO Satya Nadella has strongly countered Musk’s scepticism. In an interview with CNBC, Nadella confidently stated:
“I know I am good for my USD 80 billion.”
This was a direct response to Musk who claimed that the companies involved in the investment of the Stargate AI Project reportedly lacked the sufficient funds for the project.
Nadella emphasized that Stargate is not just about creating AI hype but building useful AI-driven solutions for real-world applications.
Sam Altman reacts to Musk’s allegations
Sam Altman, CEO at OpenAI also dismissed Musk’s concerns, calling them completely baseless. Altman further took a dig at Musk, by stating:
“I know what is good for the country may not be better for your companies, but I hope you will put America first in your new role.”
The above statement by Altman suggests that Musk’s criticism might be influenced by his business interests rather than national priorities.
China’s DeepSeek AI model adds pressure
Adding to the debate, China’s AI model DeepSeek has further intensified competition in the AI sector.
Why DeepSeek is said to be a game-changer?
It is faster and cheaper than US-developed AI models
Built-in just two months, whereas companies like OpenAI, Microsoft, and Google have spent 6+ years and billions of dollars on their AI models
The rise of Chinese AI technology has further fueled concerns among American tech companies, making the success of projects like Stargate AI even more critical for the US.
AI race heats up
With China’s AI models gaining momentum, the race for AI dominance has never been more intense. The coming months will reveal whether the Stargate project truly has the financial muscle to revolutionize AI infrastructure in the US.
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