Startups
Elon Musk: Defends Space Travel, Says SpaceX’s Starship Is The ‘Holy Grail’
February 13, 2022
January 23, 2025
By Evans Momodu
4 minute digest
Shortly after President Donald Trump unveiled a landmark $500 billion AI infrastructure project from the White House, Elon Musk publicly criticised the initiative, questioning its financial viability.
“They don’t actually have the money,” Musk posted on X, his social media platform. “SoftBank has well under $10B secured. I have that on good authority.”
President Trump’s announcement detailed the creation of "Stargate," a new venture to bolster AI infrastructure in the United States. Leaders from SoftBank, OpenAI, and Oracle joined Trump at the event, committing an initial $100 billion investment with plans to expand to $500 billion.
White House press secretary Karoline Leavitt defended the initiative, emphasizing its significance in maintaining the U.S.’s edge in AI. “President Trump is very excited about this infrastructure announcement in the field of AI... These investments are coming to our great country, and American jobs are coming along with them,” she stated.
Musk’s remarks come amid ongoing legal disputes with OpenAI and its CEO, Sam Altman. Musk has criticised OpenAI for allegedly straying from its nonprofit roots by prioritising private customers for advanced AI technologies.
Altman directly rebutted Musk’s claims on X, posting, “wrong, as you surely know. want to come visit the first site already under way? This is great for the country.” He also challenged Musk to prioritise national interests over his business concerns.
Musk’s involvement with the Trump administration adds complexity to the controversy. He has been an active supporter of some of Trump’s recent decisions, such as assisting with pardons for January 6 rioters and advocating for Ross Ulbricht's release.
However, Musk’s critique of Stargate, particularly his scepticism toward SoftBank's financial commitments, underscores tensions between major players in the AI and tech industries as they vie for leadership in a critical field.
As Stargate begins development, public and industry reactions will likely shape its trajectory, with Musk’s scepticism fuelling further debate over the project’s feasibility and broader implications for U.S.
Source: CNN
Image: CTV