A major dispute has erupted among top tech executives following the unveiling of Stargate, a $500 billion artificial intelligence initiative. Elon Musk, Sam Altman, and Satya Nadella, representing Tesla, OpenAI, and Microsoft, have exchanged pointed remarks over the ambitious project, which was announced by Donald Trump on Tuesday.
The Stargate initiative, set to be jointly financed by OpenAI, Oracle, and SoftBank, was revealed at an event attended by Sam Altman, Larry Ellison, and Masayoshi Son, who will serve as the project’s chair. Notably absent was a representative from MGX, Abu Dhabi’s state AI fund, which is also a key investor in the project.
The collaboration aims to develop critical data centers and computing infrastructure to accelerate AI advancements. While the sheer scale of investment is significant, industry estimates had already suggested that AI development costs could reach this magnitude.
One of the most vocal critics of the project has been Elon Musk, the CEO of Tesla, SpaceX, and xAI. Despite being a close ally of Trump, Musk dismissed Stargate as financially unviable. After OpenAI posted on X, Musk’s social media platform, about an initial $100 billion investment, he responded bluntly: “They don’t actually have the money.” He further claimed that SoftBank had secured far less than the purported $10 billion, citing insider knowledge.
Musk, whose net worth exceeds $400 billion, frequently shares opinions on a vast range of topics, often promoting his own ventures and political affiliations. However, his public denunciation of Stargate marks a rare and significant divergence from the White House, where he holds a prominent advisory role.
Trump has yet to publicly respond to Musk’s criticism. On Truth Social, his own platform, the president instead focused on posting a message celebrating his wedding anniversary with Melania.
Musk intensified his attack by sharing an image of a crack pipe alongside a sarcastic remark: “Leaked image of the research tool OpenAI used to come up with their $500 billion number for Stargate.” He continued his online barrage throughout the day.
Initially, Altman sought to maintain a diplomatic stance, acknowledging Musk’s achievements and calling him “the most inspiring entrepreneur of our time.” However, the tone shifted when he directly countered Musk’s skepticism about SoftBank’s involvement, challenging him to visit an active project site. “This is great for the country,” Altman stated, implying that Musk’s concerns were driven by corporate interests rather than national benefit.
Satya Nadella, known for his more measured approach, was asked about the controversy during an interview on CNBC. He responded wryly: “All I know is, I’m good for my $80 billion. I’m going to spend $80 billion building out Azure,” referring to Microsoft’s cloud-computing platform.
Unlike Musk and Altman, Nadella did not appear alongside Trump at his inauguration, although Microsoft did contribute $1 million to the inaugural committee. With stock-based earnings contributing to his estimated net worth exceeding $1 billion, Nadella has largely stayed above the fray compared to his more outspoken peers.
The underlying tensions trace back to a longstanding feud between Musk and Altman. Musk co-founded OpenAI with Altman in 2015 but later parted ways. In 2024, he filed a lawsuit against OpenAI over its shift to a for-profit model, later retracting it before filing a revised suit in August, accusing the company of deception on an extraordinary scale.
Meanwhile, Larry Ellison and Masayoshi Son, the other major figures tied to Stargate, have yet to comment publicly on the escalating dispute.
