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$500 Billion AI Investment: Stargate Does Not Have the Money - Elon Musk

Tech News

  • Elon Musk tackles Sam Altman on $500 Billion Stargate investment.
  • Here are some important financing facts on the proposed Trump-backed investment

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By: Johnielo Ataha

OpenAI’s ambitious Stargate project, aimed at building massive data centers across the U.S., is reportedly facing significant financial hurdles. According to the Financial Times, the initiative, which has the backing of OpenAI, SoftBank, and the Middle East’s MGX fund, lacks a fully developed plan and has yet to secure adequate funding.

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The project, which could eventually require $100 billion to $500 billion, aims to power OpenAI’s growing AI demands through vast infrastructure investments. However, initial commitments from SoftBank and OpenAI total only about $15 billion each, with hopes to raise additional capital through a mix of equity and debt.

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Recently, Elon Musk has voiced criticism of the project, casting doubt on its financial stability. His comments, especially given his role with Trump’s DOGE advisory commission, have reportedly sparked tension within the White House, despite attempts by the president to downplay the controversy.

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