OpenAI’s New "Backer"? Will the $500B AI Infrastructure Plan Succeed?

 

Aside from Microsoft, which has long been OpenAI’s major “sponsor,” it looks like OpenAI may have found a new “backer”—Donald Trump.

 

Reports indicate that last Friday, just before his presidential inauguration, Trump had a phone call with OpenAI CEO Sam Altman to discuss AI infrastructure. During the conversation, they talked at length about AI’s potential and why it’s crucial for the U.S. to push forward with developing AI technology.

 

Coincidentally, just a few days after that call, on January 21, President Trump made an announcement at the White House about a new joint venture involving OpenAI, SoftBank, and Oracle ($ORCL). The project, named “Stargate,” is designed to support AI development. In his speech, Trump revealed that the venture would begin with a $100 billion investment, with plans to increase that to $500 billion over the next four years, aiming to create 100,000 new jobs in the U.S.

 

 

The CEOs of the three companies—Altman, Masayoshi Son, and Larry Ellison—also attended the press conference. Altman expressed confidence, stating, “I believe this will be the most important project of this era. Without Trump, we wouldn't be able to do this.” Son emphasized that Stargate would “immediately” invest $100 billion, and Ellison mentioned that the first data center, covering one million square feet, was already under construction in Texas, with 10 initial centers on the way.

 

OpenAI also shared the plan on its official website and social media. The first investors in Stargate include SoftBank, OpenAI, Oracle, and the UAE’s tech fund MGX, with Son being appointed as chairman.

 

 

However, the announcement was met with skepticism from Elon Musk, the world’s wealthiest person. In response to OpenAI’s statement, Musk fired back, claiming, “They don’t actually have the money.” He went on to say, “SoftBank has well under $10B secured. I have that on good authority.”

 

 

Dario Amodei, CEO of OpenAI’s competitor Anthropic, also raised concerns, questioning whether Stargate could secure the $500 billion funding. He described the project as “a bit chaotic” and pointed out the lack of clarity about the actual amount of money involved and how exactly the Trump administration would be involved.

 

On social media, many users voiced doubts about the project's feasibility. The biggest questions include whether the investors can afford such a massive investment, whether chip production will meet demand, and whether OpenAI’s “nonprofit” status is compatible with its role in this commercial project.

 

In response to Musk’s latest remarks, Altman—who is usually not one for public disputes—decided to hit back. He said, “IA genuinely respect your accomplishments and think you are the most inspiring entrepreneur of our time,” but also pointed out that Musk’s claim about SoftBank’s $10 billion investment was false, accusing Musk of lying. Altman even invited Musk to visit the first site they’ve already begun building.

 

 

The feud between Musk and Altman isn’t new. Musk was one of OpenAI’s co-founders but resigned from its board in 2018. Since ChatGPT’s rise to fame, Musk has repeatedly criticized OpenAI and Altman. Last year, Musk filed several lawsuits against OpenAI to block its transition to a for-profit organization. Just two months ago, Musk filed a new lawsuit in a California court, accusing OpenAI of attempting to monopolize the generative AI market and pushing for AI militarization, which he argues presents great risks.

 

The feud between Musk and Altman has shifted from legal battles to a full-blown public spectacle. Musk’s lawsuits against OpenAI clearly go beyond concerns about AI risks—after all, Musk owns his own AI company, xAI, which directly competes with OpenAI. It’s clear that Musk has been trying to prevent OpenAI’s growth.

 

Analysts suggest that Musk, given his role in Trump’s campaign, may have some influence over AI policy in the new administration. This could potentially put OpenAI in a tough spot.

 

Last month, Altman discussed the ongoing conflict with Musk during a podcast. He acknowledged Musk’s early contributions to OpenAI, expressing gratitude and calling him a legendary entrepreneur. However, Altman also called Musk “a bully” who likes picking fights, and now his targets include Altman, Jeff Bezos, Bill Gates, Mark Zuckerberg, and many others. Altman referred to the public back-and-forth with Musk as a “circus show.”

 

Still, Altman remains optimistic that Musk won’t abuse his power within the government to target OpenAI. “Some people are jerks on Twitter, but they don’t abuse state power,” Altman stated.

 

Here’s where it gets interesting: Analysts believe Musk may use his influence to undermine OpenAI, while Altman insists that Musk won’t misuse his power. Is Altman just trying to comfort himself and OpenAI, or does he genuinely believe Musk won’t cross the line?

 

So, will Musk use his influence to put OpenAI at a disadvantage, as some analysts predict? Or will Altman’s optimism hold true, and Musk won’t cross the line? Only time will tell. #elonmusk #trump