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Trump Dismisses Musk’s AI Criticism, Calls It a Personal Grudge!

  • Senior Writer
  • April 8, 2025
    Updated
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Key Takeaways

  1. President Trump unveiled a $500 billion AI initiative, Stargate, aimed at strengthening the U.S.’s AI infrastructure and global leadership.
  2. Elon Musk questioned the financial feasibility of the project and criticized one of its key figures, OpenAI CEO Sam Altman.
  3. Trump dismissed Musk’s concerns, attributing them to personal differences between Musk and Altman, while expressing confidence in the project.
  4. Musk and Altman’s long-standing disagreement over OpenAI’s transition to a for-profit entity fueled the public dispute.
  5. Stargate seeks to address infrastructure and energy demands for AI development, with major contributions from OpenAI, Oracle, and SoftBank.

President Donald Trump on Thursday dismissed Tesla and SpaceX CEO Elon Musk’s public criticism of the Stargate AI project—a $500 billion initiative to advance artificial intelligence (AI) infrastructure in the United States.

Musk, who is a close ally of Trump, raised questions about the project’s funding and openly clashed with OpenAI CEO Sam Altman.

When asked about Musk’s remarks, Trump downplayed the criticism, citing personal animosity between Musk and Altman as the underlying issue.

“No, he hates one of the people in the deal,” Trump said in the Oval Office. “I’ve spoken to Elon. I’ve spoken to all of them, actually. The people in the deal are very, very smart people. But Elon, one of the people in the deal he happens to hate, but I have certain hatreds of people too.”

Stargate AI Project: A Landmark Initiative

The Stargate AI project, announced on Tuesday, is a joint venture between OpenAI, Oracle, and SoftBank.

The initiative aims to address critical gaps in AI infrastructure while positioning the U.S. as a global leader in artificial intelligence.

During the announcement, Trump emphasized the project’s importance, stating that it would help secure America’s technological and economic dominance.

The project’s backers have pledged $100 billion in initial private investments, with plans to scale up to $500 billion.

A key component of Stargate is building infrastructure to meet the high energy demands of advanced AI systems, which require significant computational resources.


Musk’s Concerns Over Funding

Elon Musk, who co-founded OpenAI in 2015 but left the organization in 2018 over strategic differences, criticized Stargate’s financial foundations shortly after its announcement.

Musk claimed on his social platform X: “They don’t actually have the money. SoftBank has well under $10B secured.”

This statement cast doubt on the project’s ability to secure the necessary funds for such an ambitious endeavor.

Musk’s remarks sparked widespread debate, particularly given his proximity to the Trump administration as an adviser.


Altman’s Defense of the Project

Sam Altman, CEO of OpenAI, initially responded to Musk’s criticism with praise but later pushed back more directly.

Altman, who stood alongside Trump during the announcement, defended the project and its funding status.

He addressed Musk on X, stating: “Wrong, as you surely know. Want to come visit the first site already underway? This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role, I hope you’ll mostly put [the U.S.] first.”

Altman’s response highlighted the larger goals of Stargate, which he framed as a project with national and technological significance beyond individual interests.


Trump’s Confidence in Stargate

Despite Musk’s critiques, Trump expressed confidence in the project’s participants and their ability to deliver results.

When asked about Musk’s doubts regarding funding, Trump acknowledged the uncertainty but reiterated his faith in the wealthy backers involved.

“I don’t know if they do, but you know, they’re putting up the money—the government’s not putting up anything. They’re very rich people, so I hope they do,” Trump said.

Trump also praised the collaboration between OpenAI, Oracle, and SoftBank, describing the individuals involved as “very, very smart people.”


Musk vs. Altman: A Long-Standing Dispute

The tension between Musk and Altman extends beyond Stargate.

Musk has frequently criticized OpenAI’s transition from a nonprofit organization to a for-profit entity, accusing the company of prioritizing commercial gains over its original mission to ensure equitable AI access.

In the days following Stargate’s announcement, Musk reposted multiple critiques of OpenAI’s strategy, intensifying the dispute.

Musk’s criticism of Altman is rooted in their history at OpenAI. While the two worked together to co-found the organization, their differing visions for its future led to Musk’s departure in 2018.


Political Dynamics and Broader Implications

Musk’s public rebuke of Stargate is significant, given his role as a trusted adviser in Trump’s administration.

Musk’s influence was recently demonstrated when he advocated for Trump’s pardon of Ross William Ulbricht, the founder of the Silk Road dark web marketplace.

White House Press Secretary Karoline Leavitt defended the Stargate project against Musk’s criticisms, reinforcing the administration’s commitment to its success.

“The American people should take President Trump and those CEOs’ words for it,” Leavitt said during a Fox News interview.

The Stargate AI project represents a bold vision for advancing artificial intelligence in the United States.

While Musk’s criticisms have sparked debate over its funding and execution, the project’s backers and the Trump administration remain confident in its potential to transform the AI landscape.

For more news and trends, visit AI News on our website.
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Senior Writer
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Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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