Elon Musk, the billionaire often seen in close alignment with Donald Trump, has publicly slammed the new Stargate AI project launched by the U.S. administration. This initiative, backed by OpenAI and SoftBank, aims to invest $500 billion over four years into AI infrastructure in the U.S.
Trump introduced Stargate as a way to kickstart his presidency, leaning on major tech players for support. Musk, who co-founded OpenAI with Sam Altman in 2015, has never held back in critiquing the organization, especially after they chose to operate as a non-profit. In March 2023, Musk responded to the competition by starting xAI, his own AI venture. Recently, he took to X (formerly Twitter) to comment, “They don’t have any money,” leaving many wondering why he, a significant Republican donor, hasn’t thrown his weight behind the Stargate initiative.
Despite Musk’s remarks, the funding picture looks robust for the Trump administration’s AI plans. SoftBank, OpenAI, Oracle, and MGX are providing initial backing. Supporting tech firms include Arm, Microsoft, Nvidia, Oracle, and OpenAI itself. The first datacentre for the Stargate Project will kick off in Texas with a hefty $100 billion investment. Trump’s aim is to position the U.S. as a leader in AI, a move set to create hundreds of thousands of jobs while contributing to the economic landscape. The project also aims to bolster U.S. national security and support the country’s re-industrialization.
Microsoft has invested billions in OpenAI and noted that its collaboration on the Stargate Project complements its existing partnership with the organization. They stated that OpenAI’s increased usage of Azure will continue as they ramp up their computing efforts. Interestingly, OpenAI has also partnered with Oracle and plans to work with Nvidia to develop the new computing infrastructure for Stargate.
According to analysts at Constellation Research, the pivotal aspect of the Stargate Project announcement involves changes to the exclusivity deal between Microsoft and OpenAI. Microsoft retains a right of first refusal and has approved OpenAI’s expansion for additional research and model training. This means OpenAI will use both Oracle Cloud Infrastructure and Microsoft Azure.
To alleviate any potential concerns about the Stargate Project diluting its partnership with OpenAI, Microsoft reassured stakeholders that vital elements of their agreement remain intact until 2030. This includes their access to OpenAI’s intellectual property and revenue-sharing arrangements, with exclusivity on OpenAI’s APIs continuing as well. Essentially, Microsoft will maintain rights to leverage OpenAI’s technology within its products, such as Copilot, while the OpenAI API remains a feature solely tied to Azure.