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Tech titans bicker over $500bn AI investment announced by Trump

Jan 22, 2025 - theguardian.com
On Wednesday, tensions flared among major tech leaders following Donald Trump's announcement of Stargate, a $500 billion AI investment project involving OpenAI, Oracle, and Softbank. The project aims to build essential data centers and computing infrastructure for AI development, with Masayoshi Son as the chair. Notably absent from the announcement were representatives from MGX, Abu Dhabi's state AI fund, and Elon Musk, a key Trump ally and CEO of Tesla, SpaceX, and xAI. Musk criticized the project on his social network, X, calling it a financial farce and questioning the funding claims, which marked a significant break with the White House.

The spat highlights a longstanding feud between Musk and OpenAI's Sam Altman, who co-founded the company with Musk in 2015. Altman responded to Musk's criticisms by inviting him to visit the project site and emphasizing its national benefits. Meanwhile, Microsoft CEO Satya Nadella, who was not part of the Stargate announcement, humorously distanced himself from the conflict, focusing instead on his company's $80 billion investment in Azure. The ongoing animosity between Musk and Altman stems from Musk's departure from OpenAI and subsequent legal disputes over its business model transition. Larry Ellison and Masayoshi Son have yet to comment on the situation.

Key takeaways:

  • Donald Trump announced the $500bn Stargate project, funded by OpenAI, Oracle, and Softbank, to develop AI infrastructure.
  • Elon Musk criticized the project, calling it a financial farce and questioning the funding claims made by OpenAI and Softbank.
  • The announcement highlighted tensions between Musk and OpenAI's Sam Altman, stemming from a past feud over OpenAI's business model.
  • Microsoft CEO Satya Nadella distanced himself from the controversy, focusing on his company's own $80bn investment in Azure.
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