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Musk and Altman Clash Over Trump-Backed Stargate AI Project

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A clash has erupted between tech titans Elon Musk and OpenAI CEO Sam Altman over the Stargate artificial intelligence project supported by President Donald Trump. The feud, stemming from their time on OpenAI's board, is now testing Musk's influence with the new administration.


Credit: Nathan Laine/Bloomberg
Credit: Nathan Laine/Bloomberg

Trump recently praised a joint venture, involving OpenAI, Oracle, and SoftBank, that aims to invest up to $500 billion in the Stargate project. The initiative, already underway, focuses on building data centers and power infrastructure crucial for advancing AI technology rapidly.


However, Musk, a key Trump ally, raised doubts about the investment's viability, citing SoftBank's financial standing. Altman defended the project, inviting Musk to witness progress at a Texas site. The public dispute is part of a long-standing rivalry between the two tech figures.


The conflict traces back to disagreements over OpenAI's leadership and mission. Musk, an early investor, accused the company of straying from its non-profit origins. He has taken legal action to prevent OpenAI from transitioning into a for-profit entity, with a court hearing scheduled for early February.


In response, Musk launched xAI, a rival AI venture, to counter what he perceives as unfair competition from OpenAI and its ally Microsoft. The latter has provided substantial computing resources for AI development, including projects like ChatGPT.


The Stargate project was first reported by The Information in March 2024, predating Trump's endorsement. Another company, Crusoe Energy Systems, announced a similar AI data center project in Texas, powered by renewable energy sources for sustainability and cost-efficiency.


While Microsoft has been a key supporter of OpenAI, it was notably absent from Trump's recent announcement. Microsoft clarified its ongoing investment in Stargate, emphasising a focus on research and model training capacity expansion.


During a CNBC interview at the World Economic Forum, Microsoft CEO Satya Nadella addressed Musk's concerns by highlighting Microsoft's substantial $80 billion investment in global AI infrastructure, with a significant portion allocated to the U.S.

 
  • Musk and Altman clash over Trump-backed Stargate AI project.

  • Musk questions the financial viability of the Stargate investment.

  • Legal battle between Musk and OpenAI over the company's transition to a for-profit entity.


Source: AP NEWS

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