Stargate Drama
Posted: Jan 22, 2025
- Mr. T announced a new massive AI infrastructure investment from the White House for a new company called Stargate to grow artificial intelligence infrastructure in the US
- Elon Musk criticized the funding, claiming SoftBank has less than $10B secured for the project
- SoftBank, OpenAI, Oracle, and other companies will invest $100 billion initially, with plans to invest up to $500 billion in the future
- Musk has legal disputes with OpenAI and its CEO Sam Altman, calling into question the initiative's nonprofit mission
- Companies involved in Stargate can fund the project through debt or other equity investors
- Microsoft CEO Satya Nadella confirmed Microsoft's participation in the project
- Source familiar with Stargate claims Softbank has $24.3 billion in cash and other companies have significant capital commitments.
- President Trump announced a new massive AI infrastructure investment creating a company called Stargate
- SoftBank, OpenAI, and Oracle will invest $100 billion in total with plans to pour up to $500 billion into Stargate
- Elon Musk criticized the announcement, claiming SoftBank does not have the funds needed
- Musk has ongoing lawsuit with OpenAI and CEO Sam Altman
- Companies involved in Stargate project have not publicly disclosed how they will contribute the funds
- Microsoft CEO Satya Nadella stated that Microsoft is good for their $80 billion contribution
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