Government

Elon Musk Critiques Trump’s $500 Billion AI Initiative

Published January 22, 2025

By Hadas Gold, CNN

(CNN) — Following President Donald Trump’s announcement of a massive $500 billion investment in artificial intelligence infrastructure, prominent entrepreneur Elon Musk raised concerns about the project's financial backing.

Musk took to his social media platform, X, to express his skepticism, stating, "They don’t actually have the money." He added that SoftBank, one of the project's key investors, has secured less than $10 billion. Musk mentioned, "I have that on good authority."

During the announcement, Trump revealed that a new company named Stargate would be established to enhance AI infrastructure throughout the United States. Key leaders from SoftBank, OpenAI, and Oracle were present at the event, and these companies have committed to investing $100 billion initially, with plans to expand their investment to as much as $500 billion over time.

Musk's remarks represent a significant dismissal of a prominent White House initiative, especially considering his close ties to Trump's administration. In fact, Musk was in the Oval Office during a recent signing event where Trump pardoned Ross William Ulbright, the SilkRoad founder. Additionally, Musk has had staff from his companies, SpaceX and X, assist in the release efforts for individuals convicted in connection to the January 6 Capitol riot, following another of Trump’s pardons.

Interestingly, Musk's criticism is likely influenced by his ongoing legal battle with OpenAI and its CEO, Sam Altman, who attended the announcement. Musk has publicly expressed distrust in Altman, and his lawsuit claims that OpenAI has shifted away from its original nonprofit goals, focusing instead on catering to private customers with advanced AI technologies.

While the companies involved in Stargate have not detailed their financial contributions, they may not need all funds up front. They could potentially raise capital through loans or attract additional investors.

SoftBank and OpenAI have yet to respond to requests for comments on Musk's statements.

Elon, Musk, AI