Elon Musk Calls OpenAI's $600 Billion Deal a "Sham"
2025-01-22
Author: Olivia
Elon Musk's Criticism of OpenAI's Investment Deal
In a surprising twist, Elon Musk has taken to social media to criticize a major announcement highlighting a $600 billion investment deal involving OpenAI and several tech giants. Just hours after a press event at the White House regarding the ambitious Stargate Project, Musk tweeted that the participating companies “don’t actually have the money,” casting doubt on the credibility of the funding commitment.
Details of the Collaboration
The massive collaboration includes industry titans like SoftBank, OpenAI, Oracle, and MGX, with promises to deploy $100 billion immediately and $500 billion over the next four years to support the establishment of an AI data center company. However, Musk, who has close ties to the Trump administration and reportedly occupies an office in the White House, is skeptical about the financial backing of these firms. He stated, “SoftBank has well under $10B secured. I have that on good authority,” raising questions about the sustainability of such grand promises.
Legal Dispute Between Musk and OpenAI
The controversy surrounding Musk and OpenAI deepens as they remain involved in a legal dispute. Musk has accused OpenAI of steering artificial intelligence in dangerous directions, while OpenAI dismisses his critiques as insincere and driven by personal vendetta. In a notable response, OpenAI's CEO Sam Altman expressed admiration for Musk's entrepreneurial achievements via a public post, hinting at a complex relationship between the two tech leaders.
The Stargate Project
The Stargate Project, which is currently under construction in Texas, aims to expand across various locations in the United States, aiming for a significant leap in technology development. The initial tech partners include Arm, Microsoft, Nvidia, Oracle, and OpenAI, all of whom are expected to play pivotal roles in this ambitious venture. Altman emphasized the monumental scale of the investment, stating, “The scale of this investment, obviously, is huge. And what I think that says about the likely progress of the technology, at least what all of us believe, is correspondingly huge.”