The long-standing rivalry between Elon Musk and Sam Altman erupted into a public dispute following President Donald Trump’s announcement of Stargate, a massive $500 billion AI infrastructure investment project. The joint venture brings together OpenAI, SoftBank, and Oracle to build artificial general intelligence (AGI) capabilities in the United States.
The controversy began when Musk took to X (formerly Twitter) to challenge the financial viability of the project. “They don’t actually have the money,” Musk wrote in response to OpenAI’s announcement that it would deploy $100 billion immediately. He claimed that SoftBank has “well under $10B secured,” though he provided no evidence to support this assertion.
Altman initially responded diplomatically on Wednesday morning, praising Musk as “the most inspiring entrepreneur of our time.” However, just over an hour later, he pushed back against Musk’s financial claims and invited him to visit Stargate’s first infrastructure site. Altman also took a subtle jab at Musk’s new government role, writing: “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.”
Musk’s response was indirect but pointed. He shared a 2021 post from Altman thanking LinkedIn cofounder Reid Hoffman for helping to prevent Trump’s reelection, highlighting what Musk may view as hypocrisy given Altman’s recent conciliatory stance toward the Trump administration. Altman attended Trump’s January 20 inauguration and has since expressed changed views about the president.
The public spat reflects the deep-seated tensions between the two tech leaders. Musk cofounded OpenAI with Altman in 2015 but left the board in 2018. Since then, he has become one of OpenAI’s most vocal critics while developing competing AI ventures through Tesla and his AI startup xAI. Musk has filed multiple lawsuits against OpenAI, accusing it of abandoning its nonprofit mission through its partnership with Microsoft. In November, his lawyers filed an injunction to block OpenAI’s conversion to a for-profit entity, which OpenAI dismissed as “utterly without merit.”
Despite Musk’s antagonism—including dubbing Altman “Swindly Sam”—Altman has maintained a largely diplomatic tone, acknowledging that while Musk isn’t treating them fairly, “you have to respect the guy and he pushes all of us to be more ambitious.”
Key Quotes
They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority.
Elon Musk challenged the financial credibility of the Stargate project on X, claiming the venture partners lack the capital they’ve promised. This direct attack questions the viability of one of the largest AI infrastructure investments ever announced.
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.
Sam Altman responded to Musk’s criticism with this pointed comment, referencing Musk’s government position and suggesting his opposition to Stargate may be motivated by business interests rather than national priorities.
I don’t think he’s a nice person or treating us fairly but you have to respect the guy and he pushes all of us to be more ambitious.
Despite ongoing lawsuits and public attacks from Musk, Altman maintained a diplomatic stance, acknowledging Musk’s influence on the AI industry while defending OpenAI’s position.
I genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time.
Altman opened his response to Musk with this olive branch before pivoting to defend Stargate’s funding, demonstrating his strategy of maintaining public respect while firmly countering Musk’s claims.
Our Take
This clash represents more than personal animosity—it’s a proxy war for the future of AI development. Musk’s challenge to Stargate’s funding appears strategically timed to undermine a competitor while his xAI seeks its own capital and partnerships. His criticism may also reflect genuine concerns about overpromising in AI, a pattern that has plagued the industry.
Altman’s evolution from Trump critic to someone praising the president as “incredible for the country” reveals the pragmatic political calculations AI leaders must now make. With the government increasingly involved in AI policy and infrastructure, maintaining favorable relationships with the administration has become essential.
The most significant aspect is what this reveals about AGI development becoming a geopolitical priority. When a president announces a half-trillion-dollar AI project, it signals that artificial general intelligence is viewed as critical to national competitiveness. The Musk-Altman rivalry may ultimately accelerate innovation as both push competing visions forward.
Why This Matters
This public dispute between two of AI’s most influential figures highlights the intense competition and high stakes in the race to develop artificial general intelligence. The $500 billion Stargate project represents one of the largest AI infrastructure investments ever announced, signaling that AGI development has become a national priority under the Trump administration.
The Musk-Altman feud also reveals the complex dynamics shaping AI’s future: personal rivalries, competing business interests, political alignments, and questions about corporate governance in AI development. Musk’s challenge to Stargate’s funding raises legitimate questions about whether ambitious AI projects can secure the massive capital they promise, which could impact investor confidence across the sector.
Furthermore, this story illustrates how AI development is increasingly intertwined with politics and national competitiveness. Both leaders are positioning themselves relative to the Trump administration, recognizing that government support and regulation will significantly influence who wins the AI race. The outcome of this rivalry could determine which companies and approaches dominate the future of artificial intelligence, affecting everything from technological capabilities to ethical frameworks and economic opportunities.
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Source: https://www.businessinsider.com/24-hours-of-elon-musk-and-sam-altmans-stargate-debate-2025-1