January 24, 2025
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Experts doubted Stargate’s ability to invest $500 billion in AI

Donald Trump announced the new Stargate project, which involves private investment of $500 billion in AI infrastructure. Experts expressed doubts about the possibility of investing such a large sum. The media learned about $45 billion ready for investment. On January 21, Donald Trump announced a private sector investment of $100 billion in artificial intelligence infrastructure, with the potential to expand the amount to $500 billion over four years. For this, OpenAI, Softbank and Oracle have created […]”, — write: businessua.com.ua

Experts doubted Stargate's ability to invest $500 billion in AI - INFBusiness

  • Donald Trump announced the new Stargate project, which involves private investment of $500 billion in AI infrastructure.
  • Experts have expressed doubts about the possibility of investing such a large amount
  • The media learned about $45 billion ready for investment.

On January 21, Donald Trump announced a private sector investment of $100 billion in artificial intelligence infrastructure, with the potential to expand the amount to $500 billion over four years. To do this, OpenAI, Softbank and Oracle created a new organization Stargate, but experts expressed doubts about the realism of such large-scale funding.

“Actually, they have no money. SoftBank secured less than $10 billion. I don’t know about it by hearsay,” commented Elon Musk.

The billionaire then called OpenAI CEO Sam Altman a fraud. His company, together with Softbank and Oracle, are participants in the Stargate project.

Musk is not a neutral party. He has his own AI startup xAI, and the entrepreneur is also suing the developer of ChatGPT.

Altman responded to Musk’s statements.

“Wrong, as you know of course. Do you want to visit the first facility that has already been launched? I understand that what is good for the country is not always optimal for your companies. However, in your new role, I hope that you will prioritize the interests of the United States,” he wrote.

Elon Musk became the head of the new Department of Government Efficiency (DOGE), which is responsible for reforming the government to reduce administrative costs and fight bureaucracy.

In a separate message, Altman called Musk “an inspiring entrepreneur of our time” and expressed his respect for him.

Doubts of the Anthropic chapterAnthropic CEO Dario Amodei also expressed skepticism about the realism of the ambitious plan. He called the project “a bit chaotic.” It is difficult for him to understand what exactly the new joint venture of OpenAI, SoftBank and Oracle is.

“It is not clear how much money was actually involved, how much of it was allocated and what the role of the government is,” Amodei said.

He called Trump’s very initiative to create energy facilities for AI infrastructure in the US a good idea.

There is $45 billionSoftBank and OpenAI intend to allocate $19 billion each to Stargate, receiving a 40% stake in the company. This was learned by The Information.

According to the publication, in a conversation with colleagues, Altman called Stargate something like a venture fund, whose general partners are OpenAI and SoftBank. Oracle and MGX complete the list of investors, they will give $7 billion. The rest of the money will come from partners and debt financing.

Previously, Softbank Group CEO Masaeshi Son promised to invest $100 billion in AI infrastructure in the United States.

The source

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