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‘Stargate’: Trump announces $500bn AI project, Musk skeptical

U.S. President Donald Trump Wednesday January 22, 2025 announced the launch of $500 billion AI project even as X CEO Elon Musk doubted its viability

Thursday January 23, 2025 9:43 PM, ummid.com News Network

‘Stargate’: Trump announces $500bn AI project, Musk skeptical

[Team 'Stargate' posing outside White House Wednesday January 22, 2025.]

Washington: U.S. President Donald Trump Wednesday January 22, 2025 announced the launch of $500 billion AI project even as X CEO Elon Musk doubted its viability.

The tech giants who will lead, what is billed as the world’s AI largest project, include OpenAI founder Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son.

Addressing a specially convened press conference to announce the Stargate launch at White House, Trump said this will be "the largest AI infrastructure project in history", with an investment of "at least $500 billion", of which the first installment will be $100 billion.

Trump said Stargate will build the physical and virtual infrastructure to power the next generation of AI.

Addressing the press, Oracle Chairman Larry Ellison said Stargate's first one-million square-feet data centre is already under construction in Texas.

Initial equity funders

Graphics giant Nvidia is also reportedly in talks over a possible partnership in the project though it is yet to publicly make any confirmation.

"Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners", OpenAI said.

The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and MGX.

"SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility", OpenAI said.

SoftBank CEO Masayoshi Son will be the Chairman of the Stargate project.

Targets

The Stargate Project intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States, and the first and immediate investment will be $100 billion.

"This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world", OpenAI said.

"This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies", the ChatGPT maker said.

"As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle", Microsoft funded AI giant said.

"This also builds on the existing OpenAI partnership with Microsoft. OpenAI will continue to increase its consumption of Azure as OpenAI continues its work with Microsoft with this additional compute to train leading models and deliver great products and services", the company said.

Musk unconvinced

Doubting the viability of the project, Elon Musk said, "I don't trust Sam Altman, and I don't think we want the most powerful AI in the world controlled by someone who's not trustworthy."

Elon Musk further said, "They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority."

Elon Musk's comments are important as he has emerged as one of the key advisers of Trump since the 2024 U.S. Elections.

Portia Kersten, CFO to startups in Silicon Valley and Ohio State University and Columbia Business School alumna, highlighting the faultline said, "Is this a joke? Altman is a known bad actor and OpenAI’s balance sheet is anemic. And, Mr. SoftBank lost billions in the WeWork scam making it questionable that they can raise huge sums necessary.

"Also, what value does antiquated Oracle bring? I hope there’s a plan B or some actual plan that involves Elon Musk and X AI", she added.

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