Musk Questions Feasibility of Trump-Backed $500B AI Project

WASHINGTON — Elon Musk voiced skepticism about a $500-billion artificial intelligence (AI) initiative announced by US President Donald Trump, questioning the availability of the promised funds.

The comments from Musk, who was instrumental in supporting Trump’s campaign with a $270-million donation, highlight an unexpected rift between the Tesla CEO and the president. The two had been seen as allies, with Musk playing a significant advisory role in the new administration.

Trump unveiled the ambitious AI infrastructure project, called Stargate, during his first full day in office on Tuesday. The initiative is a collaboration between Japanese conglomerate SoftBank, ChatGPT creator OpenAI, and other major players. The president described it as a transformative effort to position the US as a global AI leader, pledging “at least $500 billion” in investments over four years.

However, Musk cast doubt on the project’s funding via posts on his platform, X (formerly Twitter). “The main investors don’t actually have the money,” he wrote, directly challenging the credibility of the announcement.

Musk’s Critique

Musk further claimed that SoftBank, a major partner in Stargate, has “well under $10B secured,” citing reliable sources. He also indirectly took aim at OpenAI, a company he co-founded but departed from in 2018 following disagreements. The Tesla CEO and OpenAI’s leader, Sam Altman, who attended Tuesday’s announcement at the White House, have been embroiled in ongoing legal disputes over OpenAI’s operations and leadership.

Funding in Question

While OpenAI is valued as one of the world’s leading AI startups, it continues to operate at a loss due to the high costs of its advanced technologies. According to The Wall Street Journal, another key player in the Stargate project, Oracle, has around $11 billion in cash reserves, while SoftBank holds approximately $30 billion in liquid assets. This puts the project’s initial $100 billion commitment—and its long-term $500 billion goal—under scrutiny.

Background and Implications

Stargate is designed to supercharge AI infrastructure in the US, supporting innovation and job creation. However, Musk’s critique may complicate public confidence in the venture, particularly as Trump seeks to deliver on promises of economic and technological dominance.

As the story develops, all eyes remain on Stargate’s financial backers and the administration’s ability to secure the monumental investment required.