Musk clashes with OpenAI CEO Sam Altman over Trump-supported Stargate AI data center project
Published On Jan 22, 2025, 7:02 PM
Elon Musk and Sam Altman of OpenAI are in a public feud over the Stargate AI infrastructure project, which is backed by Donald Trump's administration. Trump has outlined a potential investment up to $500 billion for this project that aims to expand AI capabilities using renewable energy. Musk has questioned the financial backing of the project, stating that SoftBank, a key investor, lacks sufficient funds. Altman countered Musk's claims, asserting the project's benefits to the country. This ongoing conflict reflects a larger rivalry between the two men over the direction and leadership of AI development, especially concerning the evolving roles of their respective companies in the fast-growing AI sector.
Stock Forecasts
MSFT
Positive
The Stargate project could lead to increased investments and growth in the AI sector, especially for companies involved in renewable energy and data center infrastructure. Given Musk's involvement with both xAI and potential competition claims against OpenAI, the situation could create volatility in stocks directly connected to AI technology and infrastructure.
Related News
Nvidia, tech stocks rally after Trump announces $500 billion Stargate AI project
Jan 22, 2025, 10:39 AM
Nvidia stock jumped Wednesday, extending gains from the prior day following Trump’s announcement of a massive, $500 billion AI infrastructure project called Stargate. The project will be funded by Oracle, OpenAI and SoftBank.
Microsoft relaxes data center grip on OpenAI amid $500 billion joint venture
Jan 21, 2025, 8:29 PM
Microsoft on Tuesday said it has changed some key terms of a deal with OpenAI after the ChatGPT creator announced a joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion of new AI data centers in the United States. President Donald Trump gathered the leaders of the "Stargate" effort at the White House on Tuesday to announce the deal, saying it was intended to help keep the United States ahead of China and other rivals in the global AI race, using chips from Nvidia. Since 2019, Microsoft has had arrangements with OpenAI that gave the Redmond, Washington-based company the exclusive right to build new computing infrastructure for OpenAI.
US tech giants announce AI plan worth up to $500bn
Jan 21, 2025, 11:50 PM
OpenAI, Oracle and Softbank join forces to build artificial intelligence infrastructure.