Elon Musk, CEO of Tesla, has stirred controversy by raising one arm during a celebratory rally for Donald Trump’s presidential inauguration on the 20th (local time). [Captured by BBC]
[Herald Economy = Kim Bitna] Elon Musk, Tesla’s CEO and one of Donald Trump’s closest allies, expressed skepticism about President Trump’s announced plan for AI infrastructure investment in the U.S. on the 22nd (local time). This marks the first time Musk has questioned Trump’s policies.
Musk commented on the $500 billion “Stargate” initiative, announced a day prior by OpenAI, Oracle, and Japan’s SoftBank alongside President Trump, stating on X (formerly Twitter) that these companies “actually don’t have that kind of money.”
He added, “SoftBank has less than $10 billion,” citing a reliable source.
Previously, President Trump revealed at the White House that OpenAI, the developer of ChatGPT, together with software company Oracle and Japan’s SoftBank, would create ‘Stargate’ to establish data centers foundational to AI in the U.S.
These companies announced an initial investment of $100 billion, with plans to invest an additional $400 billion over the next four years during Trump’s term.
During the previous day’s briefing, President Trump signaled that the name of Stargate, a joint venture, would become commonplace, encouraging note-taking, and praised the venture’s goal to quickly create 100,000 jobs with at least a $500 billion investment in U.S. AI infrastructure, calling it a testament to America’s confidence.
SoftBank, investing in Stargate, had previously announced a $100 billion U.S. investment plan before Trump, who jokingly asked if they could increase it to $200 billion.
SoftBank Group’s chairman, Masayoshi Son, referred to these plans at the earlier briefing, saying they were “back with $500 billion.”
Sam Altman, CEO of OpenAI, responded to Musk’s financial criticisms, countering, “You’re wrong. You surely know you’re wrong,” and asked if Musk wanted to visit the first site, already under construction.
Altman continued, “What’s best for the country is not always what’s best for your company,” while expressing hope that Musk, in his new role, would prioritize America.
Musk, a crucial supporter of Trump’s election, is now a key figure in the Trump team. He has been appointed head of the newly formed Department of Government Efficiency (DOGE) to manage government spending reforms and has already received a White House email address, reported by The Hill and other congressional news outlets.
The American press has noted Musk’s critical stance on Trump’s direct AI investment announcement. The New York Times described it as “the first public break with the Trump administration,” emphasizing that it’s rare for a senior policy official to question a presidential initiative.
The Wall Street Journal, in an article titled “Musk Throws Cold Water on Trump-backed AI Project,” highlighted Musk and Altman’s strained relationship, mentioning that although they co-founded OpenAI, Musk later left and reportedly holds Altman in contempt, according to sources close to Musk.
Musk has since founded xAI, a startup competing with OpenAI.