“Elon Musk Dismisses SoftBank-OpenAI’s $500B AI Vision: ‘They Don’t Have the Money'”

Elon Musk criticized the $500 billion Stargate project for OpenAI and Softbank’s new infrastructure and cast doubt on its financial capabilities. The initiative includes major technology companies such as Oracle, MGX, Arm, Microsoft and Nvidia. Construction has already begun in Texas and is supported by a joint partnership with Microsoft and Nvidia that aims to promote easy research and make America industrial again.

Following the announcement of the Stargate project by Tesla and SpiceJet, Musk has claimed that he has running short of funds for such an initiative. This project is a $500 billion initiative to build new infrastructure across the US, whose chairman is Masaoka Son.

“They don’t actually have the money,” he said in a post on X.

SoftBank, a major investment firm, has less than $10 billion in secured funding available, Musk added.

This investment has formed an alliance of major companies in which Softbank and OPENAI are the main partners. Softbank will oversee financial matters while OPENAI will handle operations. In addition, Oracle and MGX have joined as equity investors.

ARM, Microsoft, Nvidia and Oracle will work as major technological partners. Initial construction work is underway in Texas, and there are plans to expand to several sites across the country.

The project continues OPEN AI’s ongoing partnership with Microsoft that will expand the use of Azure cloud services. In addition, OPEN AI will deepen its long-term collaboration with Microsoft, a relationship that began in 2016.

OPEN AI said in a statement, “This investment will make America industrial again… but more importantly, it gives OPEN AI the necessary computing power to pursue further research.” The companies made the announcement at a press conference at the White House, where President Donald Trump discussed plans to invest in American infrastructure.