Tech billionaire Elon Musk has expressed skepticism over former US President Donald Trump’s ambitious $500 billion artificial intelligence (AI) investment plan, claiming the funds may not actually exist.
Rare Rift Between Musk and Trump
According to a report by AFP, published in Dawn, Musk’s remarks mark a rare instance of disagreement between him and Trump. Musk, who played a significant role in the new administration after contributing $270 million to the election campaign, has raised concerns about the project’s financial backing.
Trump Unveils ‘Stargate’ AI Project
Trump has announced an AI infrastructure project called ‘Stargate,’ which he claims will inject at least $500 billion into the sector over four years. However, Musk remains unconvinced about the availability of these funds.
SoftBank and Other Investors Lack Funds, Says Musk
Posting on his social media platform ‘X,’ Musk stated that the key investors in the AI initiative “actually don’t have any money.” He specifically pointed to SoftBank, saying the company has less than $10 billion in reserves, adding, “I have this on good authority.”
Possible Criticism of OpenAI
Musk’s remarks may also be directed at OpenAI, the world’s leading AI startup, which he co-founded but left in 2018. His legal battles with OpenAI CEO Sam Altman continue, with Musk repeatedly filing lawsuits against the ChatGPT maker.
Financial Questions Surrounding ‘Stargate’ Project
Despite OpenAI’s high valuation, the company faces steep costs in maintaining and upgrading expensive AI technology. Meanwhile, The Wall Street Journal reports that Oracle, another investor in Trump’s AI plan, holds about $11 billion in cash and securities, while SoftBank has roughly $30 billion.
The ‘Stargate’ project has committed an initial $100 billion investment, with plans to scale up to $500 billion over the next four years. However, Musk’s skepticism raises doubts about whether the necessary financial resources will materialize.
