Elon Musk, the billionaire entrepreneur, and Sam Altman, the CEO of OpenAI, are publicly disputing over Stargate, a massive investment venture aimed at building OpenAI’s data centers across the United States. Announced recently, Stargate is an extensive plan that’s set to channel approximately $500 billion from investors, including SoftBank and Middle East AI fund MGX, into data infrastructure in support of OpenAI’s AI endeavors.
Yet, Musk casts doubt on Stargate’s funding claims. Engaging in a social media feud, Musk challenges the project, contending that it lacks the funds it claims to possess. Emphasizing that SoftBank’s contribution is significantly less, Musk adds fuel to his rivalry with Altman.
As the owner of AI firm xAI, Musk’s criticisms aren’t impartial. His company is ensnared in a legal wrangle with OpenAI over allegedly anti-competitive tactics. Musk’s claims were met with Altman’s quick and fiery pushback, where the latter reiterated the country-wide benefits Stargate promises to deliver.
As the lead of the Department of Government Efficiency (DOGE), Musk is actively advocating for governmental spending cuts, a move that’s embroiled in legal hurdles. Both xAI and OpenAI are vigorously competing for resources to develop their respective AI systems. While the extent of Microsoft’s allegiance to OpenAI remains unknown, the tech giant asserts its commitment to the hefty AI data center investment this year.
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