Musk Casts Doubt on Trump’s Stargate AI Investment Plan, Questions Funding Sources

Following President Donald Trump’s announcement of a major AI infrastructure investment Stargate from the White House, Elon Musk quickly cast doubt on the project.

In a post on his social media platform X, Musk questioned the financial backing behind the initiative, stating, “They don’t actually have the money,” and adding, “SoftBank has well under $10B secured. I have that on good authority.”

Trump unveiled plans for a new company called Stargate, which aims to advance artificial intelligence infrastructure in the U.S. The announcement was made alongside leaders from SoftBank, OpenAI, and Oracle, whose companies are expected to contribute a combined total of $100 billion to kickstart the project. Over time, Stargate is projected to receive up to $500 billion in investment.

Musk Casts Doubt on Trump’s Stargate AI Investment Plan, Questions Funding Sources

Musk’s remarks stand out as a significant critique from someone who has had close ties to the Trump administration. Musk, who has been deeply involved with the White House, was present on Tuesday when Trump signed a pardon for Ross William Ulbricht, the founder of the Silk Road dark web marketplace. Musk also had a representative from SpaceX and X assist in efforts to secure pardons for individuals involved in the January 6 riots.

Musk’s skepticism about the Stargate project is not surprising, given his ongoing legal battle with OpenAI and its CEO Sam Altman, who attended the announcement. Musk, who has previously expressed a lack of trust in Altman, has sued OpenAI, accusing the company of shifting away from its original nonprofit vision by restricting access to advanced AI technologies for exclusive customers.

While the companies behind Stargate have not disclosed how the funds will be raised or allocated, they may rely on strategies like debt financing or attracting additional investors, rather than having the entire sum available upfront. Neither SoftBank nor OpenAI immediately responded to requests for comment.