“They don’t actually have the money” – Elon Musk shoots down OpenAI’s big Stargate reveal

Shortly after OpenAI unveiled its $500 billion Stargate initiative, Elon Musk took to his social media platform to express his doubts about the project. In a short quip posted in response to the OpenAI announcement, Elon Musk said, “They don’t actually have the money.” 

After laying down arms for the Donald Trump inauguration events, Elon Musk and Sam Altman appear to be on a collision course once again. The CEOs of competing AI companies, OpenAI and xAI, got into an exchange on X (formerly Twiter), directly stating that the investors backing the project are financially incapable. 

The animosity between Elon Musk and Sam Altman has had several episodes. Musk founded his AI company, xAI, in 2023 after the split from OpenAI, which Elon Musk previously criticized for its close ties to Microsoft. 

Elon Musk tears down White House project

The Stargate project is a $500 billion partnership between SoftBank, OpenAI, MGX, and Oracle. It aims to invest heavily in artificial intelligence infrastructure across the United States. OpenAI made the announcement on its X account, and hours later, Musk was in the comments section, sharing his doubts about the project’s financial viability. 

“They don’t actually have the money,” Musk wrote. “SoftBank has well under $10 billion secured. I have that on good authority.”

While Musk never stated a source for his claims, his skepticism may be based on SoftBank’s significant losses in its vision fund. 

Musk’s public comments about the Stargate project come as a shock, considering his position in Trump’s innermost circle. The Stargate initiative is one of the major tech investments of the White House during the second President Trump administration. 

However, his relationship with President Trump aside, the Tesla CEO has reason to go after OpenAI as he and Sam Altman are currently in a legal battle over the latter’s for-profit ambitions for his company. 

Sam Altman responds to criticism 

With the financial feasibility of his project called into question, Sam Altman took to social media to clarify his company’s position on Elon Musk’s accusations. 

“Wrong, as you surely know,” Altman responded . 

Altman refuted Musk’s claims, emphasizing the project’s substantial backing. The companies involved in the joint venture are reputable multi-billion-dollar organizations, and Softbank, which Musk specifically targeted, reported a profit of approximately $1.87 billion in the July-September quarter of 2024. The company also witnessed a 12% increase in its stocks following the announcement. 

Altman went on to question Musk’s plans for the US in his capacity as the head of the Department of Government Efficiency ( DOGE ), stating “This is great for the country. 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 (America) first.”

CNN reports that a source familiar with Stargate has also refuted Musk’s claims, stating that SoftBank has $24.3 billion in cash on its balance sheet according to its latest earnings. 

The source further confirmed that MGX has $100 billion in capital commitments, Oracle has $11 billion in cash on its latest balance sheet, and OpenAI secured more than $10 billion in its recent round of venture capital.

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