Sam Altman Criticizes Elon Musk's Alleged Interference in OpenAI's $500 Billion 'Stargate' Project

Didn't think Elon Musk was going to abuse his power in the government: Sam Altman

Speaking at OpenAI's new podcast, CEO Sam Altman discussed a range of topics, from the potential ChatGPT 5 release date to the New York Times lawsuit. When discussing the Stargate project, Altman said, "I didn't think Elon was going to abuse his power in the government to unfairly compete." "I regret to say I was wrong about that," he said. He was responding to the host's question regarding reports that Musk had attempted to derail the project. The Wall Street Journal had reported that Musk had made significant efforts to block the project unless it included his own AI startup, xAI. The 'Stargate UAE' project aims to build the world's largest set of AI data centres outside the United States, and its first phase is expected to come online by 2026. "I just think it's really unfortunate for the country that he would do these things, and I didn't think, I genuinely didn't think he was going to," he continued. However, he added that he is grateful that the administration did the "right thing" and stood up to his behaviour. He also shared what it felt like to visit the $500 billion project's first site in Abilene, Texas. Also Read: OpenAI, Oracle developing 'world's biggest' AI training facility: Sam Altman "I knew in my head what an order of gigawatt scale site looks like," the OpenAI CEO said. "But then to go see one being built and the, like, thousands of people running around doing construction and.... stand inside the rooms where the GPUs are getting installed and just, like, look at how complex the whole system is and the speed with which it's going is quite something." The Stargate project is a $500 billion initiative that brings together major tech firms, with SoftBank and OpenAI leading the way. SoftBank manages the financials, and its CEO, Masayoshi Son, chairs the project, while OpenAI has taken responsibility for operations. Oracle and MGX have also come on board as equity investors. Altman had claimed that the facility in Texas would be the biggest in the world.

Sam Altman Says He 'Didn't Think' Elon Musk Would Abuse Government Power, Tesla CEO Hits Back With 'Scam Altman' Jibe - Oracle (NYSE:ORCL), Metagenomi (NASDAQ:MGX)

OpenAI chief executive Sam Altman says he "didn't think Elon was going to abuse his power in the government to unfairly compete" but now believes he was wrong after Tesla's founder allegedly tried to derail OpenAI's $500 billion "Stargate" data-center deal. What Happened: Altman made the remarks on the first episode of the OpenAI Podcast, adding, "I regret to say I was wrong about that ... I'm grateful the administration did the right thing and stood up to his behaviour." The Wall Street Journal reported last month that Musk lobbied officials to block the project unless it included his own startup, xAI. Stargate aims to build the world's largest cluster of AI data centers outside the United States, with a first gigawatt-scale site in Abilene, Texas, slated to go online in 2026. SoftBank will finance the multi-phase complex, Son Masayoshi will chair it and OpenAI will operate the facilities. Oracle ORCL and MGX MGX have taken minority stakes. Hours after the podcast dropped, Musk posted on X, "Scam Altman strikes again." He has repeatedly accused OpenAI, which he co-founded as a nonprofit in 2015, of becoming "a closed-source de-facto subsidiary" of Microsoft and sued the lab for allegedly abandoning its original mission. See also: Elon Musk's Tesla To Build First Grid-Scale Energy Storage Site In China With $550 Million Investment Why It Matters: Altman warns that attempts to kneecap rivals will slow domestic capacity and "be unfortunate for the country," but predicted Stargate will proceed "at the speed we want." Meanwhile, OpenAI's relationship with Microsoft has not been at its best lately. OpenAI is weighing whether to accuse Microsoft of anticompetitive tactics and ask federal regulators to scrutinize their contract, a move that could upend the companies' once-cozy alliance, The Wall Street Journal reported Monday. Executives want to curb Microsoft's sway over OpenAI's products and computing power, yet they still need Microsoft's approval to convert OpenAI into a fully for-profit business that could raise more capital or go public. The firm's planned Texas data-center buildout likewise aims to lessen reliance on Microsoft's cloud resources. Image via Shutterstock Read next: FDA Approves Gilead's 'Game Changing' Twice-Yearly Shot To Prevent HIV Transmission, Critics Slam $28K Price Tag MGXMetagenomi Inc$1.501.39%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum5.54GrowthNot AvailableQualityNot AvailableValue92.28Price TrendShortMediumLongOverviewORCLOracle Corp$211.120.12%Market News and Data brought to you by Benzinga APIs