
Washington, D.C. – A landmark $500 billion AI investment project announced at the White House on Tuesday has sparked a fierce public feud between tech titans Elon Musk and Sam Altman. The initiative, dubbed “Stargate,” is a joint effort by SoftBank, OpenAI, Oracle, and MGX to accelerate the development of artificial intelligence in the United States. However, Musk, a former OpenAI co-founder and now one of its biggest critics, immediately attacked the project, questioning its credibility.
The White House Announcement
President Donald Trump beamed as SoftBank CEO Masayoshi Son predicted that the AI initiative would usher in America’s “golden age” of technology. The investment is aimed at building massive AI data centers over the next four years, with the ultimate goal of achieving Artificial General Intelligence (AGI).
However, the celebratory mood was short-lived. Within hours, Musk took to X (formerly Twitter) to lambast the plan, claiming that “they don’t actually have the money.” He also mocked Altman by posting an image of a crack pipe, implying that OpenAI’s leadership was delusional. In response, Altman fired back, saying:
“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 🇺🇸 first.”
The AI Power Struggle
The tension between Musk and Altman stems from a long-standing rivalry in the race for AI supremacy. Musk, who previously helped fund OpenAI before leaving over disagreements about its direction, has since launched his own AI venture, xAI. Meanwhile, Altman has positioned OpenAI as a leader in AI advancements, with its ChatGPT models dominating the market.
At the core of the debate is AGI – an AI system capable of surpassing human intelligence. While OpenAI and SoftBank argue that their investment will put the U.S. ahead of China in AI development, Musk has repeatedly warned that AGI must be carefully controlled to avoid existential risks.
The Bigger Picture: U.S. vs. China
Geopolitical tensions also loom large over the AI race. China has been rapidly advancing in AI research, with models like DeepSeek making significant strides. The U.S. government has been keen on ensuring that America remains the global leader in AI, and Stargate is part of Trump’s strategy to cement U.S. dominance.
What Comes Next?
Despite Musk’s criticism, the AI initiative is moving forward. However, questions remain about:
- Funding: Where the $500 billion will come from.
- Regulation: How AGI development will be controlled.
- Industry Competition: Whether this gives OpenAI an unfair advantage over other AI companies.
Experts like Ethan Mollick of the Wharton School warn that the AI industry lacks a clear direction. While companies race toward AGI, there is little consensus on what “winning” this race actually means.
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