Elon Musk and Sam Altman's Feud Escalates Amid Trump's $500 Billion 'Stargate' AI Project

9 Sources

A long-standing rivalry between tech titans Elon Musk and Sam Altman intensifies as President Trump announces a massive AI infrastructure project, causing tension in the new administration.

News article

Trump Announces $500 Billion 'Stargate' AI Project

President Donald Trump, in a high-profile White House event, unveiled the ambitious $500 billion 'Stargate' artificial intelligence infrastructure project. The announcement, made alongside tech industry leaders Sam Altman of OpenAI, Larry Ellison of Oracle, and Masayoshi Son of SoftBank, aims to invest heavily in AI infrastructure and create over 100,000 American jobs by 2029 1.

Musk-Altman Feud Intensifies

The announcement has reignited a long-standing feud between Elon Musk and Sam Altman, former collaborators turned rivals. Musk, who was noticeably absent from the White House event, took to social media to criticize the project, claiming that OpenAI and SoftBank lack the necessary funds to fulfill their commitments 2.

Musk tweeted, "They don't actually have the money," and asserted that SoftBank had secured well under $10 billion 1. Altman swiftly countered, stating Musk was "wrong, as you surely know," and invited him to visit the project's first site 5.

Trump's Response and White House Reaction

President Trump appeared to downplay Musk's criticism, attributing it to a personal vendetta against Altman. "Elon, one of the people he happens to hate. But he has a certain hatred of people too," Trump remarked 1. However, reports suggest that Trump's staff are "furious" with Musk, with one Trump ally stating, "It's clear he has abused the proximity to the president" 4.

Political Implications and Tech Industry Dynamics

The incident highlights the complex dynamics between tech industry leaders and the new Trump administration. Musk, who contributed significantly to Trump's re-election campaign, finds himself at odds with the administration's embrace of Altman and OpenAI 5. This tension underscores the potential instability in alliances between powerful figures in tech and politics.

Broader Context of AI Development

The Stargate project announcement comes against the backdrop of ongoing AI infrastructure development that began during the Biden administration. However, the current announcement's scale and the direct involvement of tech CEOs in crediting Trump mark a shift in how such initiatives are presented and perceived 3.

Future of Tech-Government Relations

As the Trump administration moves forward with its AI agenda, the incident raises questions about the future of tech-government relations. The public squabble between Musk and Altman, played out in the context of a major government initiative, may set a precedent for how tech leaders interact with the administration and each other in the public sphere 5.

Explore today's top stories

NVIDIA Unveils Major GeForce NOW Upgrade with RTX 5080 Performance and Expanded Game Library

NVIDIA announces significant upgrades to its GeForce NOW cloud gaming service, including RTX 5080-class performance, improved streaming quality, and an expanded game library, set to launch in September 2025.

CNET logoengadget logoPCWorld logo

10 Sources

Technology

21 hrs ago

NVIDIA Unveils Major GeForce NOW Upgrade with RTX 5080

Nvidia Develops New AI Chip for China Amid Geopolitical Tensions

Nvidia is reportedly developing a new AI chip, the B30A, based on its latest Blackwell architecture for the Chinese market. This chip is expected to outperform the currently allowed H20 model, raising questions about U.S. regulatory approval and the ongoing tech trade tensions between the U.S. and China.

TechCrunch logoTom's Hardware logoReuters logo

11 Sources

Technology

21 hrs ago

Nvidia Develops New AI Chip for China Amid Geopolitical

SoftBank's $2 Billion Investment in Intel: A Strategic Move in the AI Chip Race

SoftBank Group has agreed to invest $2 billion in Intel, buying common stock at $23 per share. This strategic investment comes as Intel undergoes a major restructuring under new CEO Lip-Bu Tan, aiming to regain its competitive edge in the semiconductor industry, particularly in AI chips.

TechCrunch logoTom's Hardware logoReuters logo

18 Sources

Business

13 hrs ago

SoftBank's $2 Billion Investment in Intel: A Strategic Move

Databricks Secures $100 Billion Valuation in Latest Funding Round, Highlighting AI Sector's Rapid Growth

Databricks, a data analytics firm, is set to raise its valuation to over $100 billion in a new funding round, showcasing the strong investor interest in AI startups. The company plans to use the funds for AI acquisitions and product development.

Reuters logoAnalytics India Magazine logoU.S. News & World Report logo

7 Sources

Business

5 hrs ago

Databricks Secures $100 Billion Valuation in Latest Funding

OpenAI Launches Affordable ChatGPT Go Plan in India, Eyeing Global Expansion

OpenAI introduces ChatGPT Go, a new subscription plan priced at ₹399 ($4.60) per month exclusively for Indian users, offering enhanced features and affordability to capture a larger market share.

TechCrunch logoBloomberg Business logoReuters logo

15 Sources

Technology

13 hrs ago

OpenAI Launches Affordable ChatGPT Go Plan in India, Eyeing
TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2025 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo