Key Points and Summary: Tensions are brewing between President Donald Trump and Elon Musk, head of the new Department of Government Efficiency, over Trump’s $500 billion Stargate AI project.
-The initiative, involving OpenAI, Oracle, and SoftBank, aims to revolutionize AI infrastructure, but Musk has publicly questioned its financial viability, declaring, “They don’t actually have the money.”
-OpenAI’s Sam Altman fired back, defending the project and accusing Musk of prioritizing personal interests over national benefit.
-The criticism has reportedly infuriated Trump’s staff, highlighting fractures in the once-close alliance between the two powerful figures.
-As the controversy unfolds, America’s AI future hangs in the balance.
Donald Trump vs. Elon Musk: AI Clash Threatens Political Alliance Over Stargate Project
Ever since Donald Trump and Elon Musk became political allies last year, there have been quite a few reasons to expect the two men — now, respectively, the president of the United States and the head of the new Department of Government Efficiency (DOGE) — to eventually fall out with one another.
Both are men with huge egos used to being the unquestioned number one in any hierarchy.
They have been at odds before, including when Musk resigned from Trump’s business councils early in Trump’s first term.
There have been occasional reports that Trump is annoyed by his ally always being around.
Musk is the wealthiest man in the world, and either the CEO or owner of several different companies, and his work with the government is full of conflicts of interest, whether it involves aerospace policies or electric vehicle credits.
Now, their first significant conflict is here, and it’s over artificial intelligence.
Is the Money Real?
Last week, Trump announced the launch of Stargate, a $500 billion AI infrastructure investment involving OpenAI, Oracle, and Softbank.
The deal was announced at a White House ceremony attended by the CEOs of the three companies.
Per CNN, Trump stated that Stargate will build “the physical and virtual infrastructure to power the next generation of AI,” including data centers. The companies will put in $100 million to start, with “plans to pour up to $500 billion into Stargate in the coming years,” per the CNN story. Trump also promised that the project would create up to 100,000 jobs in the U.S.
However, Musk, who has his own AI product called Grok and has been at odds with OpenAI’s Sam Altman in recent years, used X to rip the project on the day of the announcement, which he did not attend.
Elon Musk vs. Sam Altman
In response to OpenAI’s Stargate announcement, Musk declared “They don’t actually have the money” and “SoftBank has well under $10B secured. I have that on good authority.”
“Wrong, as you surely know,” Altman replied on X. “Want to come visit the first site already under way? 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.”
Trump’s Staff vs. Musk
By the end of the week, Politico was reporting that Trump’s staff was “furious” at Musk for stepping on and trashing the Stargate announcement.
“It’s clear he has abused the proximity to the president,” an anonymous Trump ally told Politico. “The problem is the president doesn’t have any leverage over him and Elon gives zero [expletives].”
“We are now working with him to make sense of his ideas — ideas are innovative. Execution not so much,” a White House official said of Musk, per Politico.
Trump, meanwhile, addressed the issue at a subsequent executive order signing, per the White House signing.
Donald Trump – Image by Gage Skidmore
“I don’t know if they do, but, you know, they’re putting up the money. The government is not putting up anything. They’re putting up money. They’re very rich people, so I hope they do,” Trump said. “And, I mean, Elon doesn’t like one of those people,” the president added, presumably about Altman.
Steve Bannon, Trump’s former adviser, also ripped Musk, also to Politico.
“I’ve never seen action like this in my life,” Bannon said of the criticism of the AI project. He also asked Trump’s chief of staff to “sit him down” and “sort it out immediately.”
Politico also reported that Musk appears to favor Microsoft as an investor in any such project.
Author Expertise and Experience:
Stephen Silver is an award-winning journalist, essayist and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
