Elon Musk recently escalated his long-standing feud with Sam Altman, CEO of OpenAI, criticizing the ambitious $500 billion Stargate AI infrastructure plan backed by Altman. Musk, currently serving as a senior advisor to former President Donald Trump and founder of AI company xAI, publicly expressed his dissatisfaction with the Stargate project, igniting tensions not just between himself and Altman but also with the Trump administration.
When questioned about Musk's comments, which appeared to undermine the White House initiative, President Trump adopted a nonchalant demeanor, stating, "No, it doesn’t," indicating he was unfazed by Musk's criticism. The President acknowledged the personal animosity Musk holds toward Altman, which has resurfaced amid this major infrastructure initiative.
The Stargate project marks one of the Trump administration's significant endeavors, boasting initial investments of $100 billion from OpenAI, Japanese investment company SoftBank, Oracle, and UAE-based MGX, with projections of total funding reaching $500 billion over four years. Trump touted the undertaking as "the largest AI infrastructure project by far in history,” which he believes will catapult the U.S. to the forefront of AI technology.
Musk, not one to hold back, took to his social media platform X to voice skepticism about SoftBank's financial commitments, insisting, "SoftBank has well under $10B secured. I havethat on good authority." His comments were met with pushback from White House Press Secretary Karoline Leavitt, who emphasized confidence in the leaders backing the project, stating, "The American people should take President Trump and those CEOs’ words for it. These investments are coming to our great country and American jobs are coming along with them.”
Individuals close to Trump quickly expressed frustration over Musk's remarks, with some unnamed allies accusing the tech mogul of misusing his influence on the President. Despite the backlash, Altman, challenged by Musk’s derogatory remarks about the Stargate initiative, decided to advise OpenAI employees to "simply ignore" the criticisms coming from Musk.
Altman initially acknowledged Musk's entrepreneurial spirit, calling him "the most inspiring entrepreneur of our time," before launching his own rebuttal. He addressed Musk’s skepticism directly, remarking, "Wrong, as you surely know. Want to come visit the first site already under way? This is great for the country. 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 [the U.S.] first.” This back and forth lays bare the intense competition and conflict between the two tech leaders who were once collaborators.
The simmering feud between Musk and Altman dates back to their early days at OpenAI, where they were co-founders. Musk departed from the organization in 2018 after OpenAI declined his proposal to take control of the firm. Following his exit, Musk expressed determination to spearhead AI development independently within Tesla. The past years have seen fluctuations between collaboration and confrontation, including Musk’s legal actions against Altman and OpenAI over alleged violations of founding nonprofit principles, fueled by OpenAI's partnership with Microsoft.
Their relationship appeared to soften briefly after Musk withdrew his initial lawsuit following a friendly encounter at a conference where they reportedly hugged. Unfortunately, this truce did not last, as Musk refilled the lawsuit last August, and sharp barbs have since replaced pleasantries. Now, Musk’s attacks have taken on personal dimensions, as he has taken to mocking Altman with the nickname "Swindly Sam," channeling the caustic tone often used by Trump toward his opponents.
Despite this, Altman maintains complexity within the rivalry, recognizing Musk's impact on the industry. "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," Altman stated recently, hinting at the fierce competitive environment they find themselves entrenched within.
With the stakes this high, it remains to be seen how the Stargate project will evolve under scrutiny from industry players like Musk, and whether it can achieve the ambitious goals outlined by the Trump administration. Regardless, the contentious interplay between Musk and Altman not only reflects personal animosity but also serves as a microcosm of the broader tensions within the burgeoning AI industry, where collaboration, competition, and individual egos collide.