On Tuesday, US President Donald Trump announced a joint venture, which will see an investment of up to USD 500 billion through a new partnership between OpenAI, Oracle, and SoftBank. The new entity, named Stargate, is already starting to build out data centres and electricity generation, which will be key for the further development of fast-evolving AI technology. While Trump declared Stargate to be a "resounding declaration of confidence in America's potential," one of his members of the inner circle, Elon Musk, has openly clashed with OpenAI CEO Sam Altman over the artificial intelligence infrastructure project.
Fued tests Musk's influence with the new president
The latest feud between Musk and Altman palpably tests Musk's influence with the new president, who helped bankroll his campaign and now leads one of Trump's flagship initiatives aimed at cost-cutting initiatives. Musk has questioned the value of the investment after the announcement was made as he posted on X, saying, "They don't actually have the money."
However, Musk's remarks attracted Altman's response, who responded on Wednesday saying, "SoftBank has well under $10B secured. I have that on good authority." Altman attacked Musk, saying the Tesla CEO was "wrong, as you surely know," as he also invited him to visit the first site in Texas that is undergoing construction.
"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 (America) first," Altman said.
Background of the clash
Musk, who used to be an early OpenAI investor and board member, sued the artificial intelligence company last year, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits.
Since then, Musk has escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. A hearing is set for February in a California federal court.
Musk has already started his own AI company, xAI, that is building its big data center in Memphis, Tennessee.
Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT.
(With inputs from AP)
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