President Trump will make critical infrastructure announcements on his second day in office.
Elon Musk, the businessman and CEO of This raises questions about whether there is sufficient funds available.
The new project, called Stargate, will see SoftBank, OpenAI, and Oracle collaborate to build a data center in the United States to further advance AI, which is expected to increase productivity by automating tasks.
Oracle Chairman Larry Ellison also said the project could help develop customized vaccines by linking the technology with digital health records, potentially making it easier to treat diseases such as cancer. he suggested.
Elon Musk (right) questions whether there is enough money to carry out the massive $500 billion artificial intelligence (AI) infrastructure project announced by President Donald Trump on Tuesday. There is. Recommended by OpenAI CEO Sam Altman (Aaron Schwartz/Sipa/Bloomberg via Getty Images and Saul Loeb-Pool/Getty Images./Getty Images)
President Trump announces “largest ever” AI infrastructure project involving SoftBank, OPENAI, and Oracle
The initial investment is expected to be $100 billion, with the potential to reach five times that amount. Microsoft, NVIDIA, investor MGX and chipmaker Arm are also partners in the project.
An announcement posted by OpenAI to will begin a $100 billion rollout immediately.”
But Musk, who has a rift in his relationship with OpenAI CEO Sam Altman, suggested on X that the AI company doesn't have the funding to back up its announcement.
“They don't actually have the money,” Musk tweeted at X in response to OpenAI's post.
“Musk then followed up his post by saying, 'SoftBank has secured funding well under $10 billion. I have it on good authority.'
But Altman refuted Musk's claims with applause.
President Trump announced Stargate on January 21, 2025, during a speech in the Roosevelt Room of the White House in Washington, DC. (Jim Watson/AFP via Getty Images/Getty Images)
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“No, you know it. Why not come to the first site where construction has already begun?” Altman wrote.
“This is great for the country. I know what's great for the country isn't necessarily what's best for the company, but I want my new role to primarily put America first.”
Altman also appeared to calm the situation, praising Musk as one of the “most inspiring entrepreneurs of our time.”
Tesla CEO Musk in March accused ChatGPT developer OpenAI of abandoning the company's original founding mission of developing open source artificial general intelligence technology for the benefit of humanity over profit. announced that they would sue Altman and others.
Meanwhile, a source familiar with Stargate told Fox Business that Stargate is prepared to immediately commit $100 billion to the project.
Companies participating in the venture will use capital from deep-pocketed founding partners, additional capital from co-investors, as well as third-party debt and other sources to make the investment, the person said. He says he is in a favorable position.
OpenAI, Photo Logo, SoftBank and Oracle will cooperate to build a data center in the US for further development of AI. (Photo credit: Dilara Irem Sancar/Anadolu via Getty Images / Getty Images)
For example, SoftBank had $24.3 billion in cash on its balance sheet as of September 30, 2024, according to its latest financial results. At the time of earnings, SoftBank's loan-to-value was 12.5%.
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Sources say MGX has $100 billion in capital commitments, Oracle has $11 billion in cash on its balance sheet, while OpenAI recently raised more than $10 billion in capital. Announced.
When asked about Musk's comments on CNBC on Wednesday, Microsoft CEO Satya Nadella said that Microsoft is putting $80 billion into the project.
“All I know is that it's OK to spend $80 billion,” Nadella said. “OpenAI models exist everywhere in the world, and customers can trust Microsoft to deliver OpenAI models and other models.”
Fox Business understands that the companies involved in Stargate have not yet decided how to break down their commitments towards the $500 billion figure. Some people may put more money into a project than others.
