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Home ยป Musk criticizes the megaprojet of AI supported by Trump
AI in Finance

Musk criticizes the megaprojet of AI supported by Trump

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The Elon Musk technology Titan questioned an AI project of $ 500 billion announced by US President Donald Trump on Wednesday, saying that the investment was actually not there.

These comments are a rare example of a break between the richest man in the world and Trump, Musk playing a key role in the new administration after spending $ 270 million for the electoral campaign.

On his first full day at the White House, Trump announced on Tuesday a major investment to build an infrastructure for artificial intelligence, led by the Japanese giant Softbank and the manufacturer of Chatgpt Openai.

Trump said the company, called Stargate, “will invest at least $ 500 billion in AI infrastructure in the United States.”

But in a message published on its X social media platform, Musk said that the main investors “have no really money.”

“Softbank has secured much less than $ 10 billion. I have that of good authority,” added Musk in a later article.

– ‘Fake’ –

Elon could be particularly targeted on Openai, the main world startup of AI that Musk helped found before leaving in 2018.

The boss of Tesla and the director general of Openai, Sam Altman, who was present at the White House on Tuesday, are mired in a serious quarrel with Musk opening repeated proceedings against the company behind Chatgpt.

“False, as you surely know. Want to come and visit the first site already underway?” Altman responded to Musk on X.

“It’s great for the country. I realize that what is great for the country is not always what is optimal for your businesses, but in your new role, I hope you will give priority (in the country) “He added.

Openai is one of the most valued startups in the world, but loses money due to high costs related to the production of its expensive technology.

According to the Wall Street Journal, the Cloud Oracle giant, also involved, has around $ 11 billion in liquidity and titles. SoftBank has around $ 30 billion in liquidity.

“The American people should believe the words of President Trump and their CEOs. These investments arrive in our big country and American jobs arrive with them,” said Trump spokesperson Karoline Leavitt on Fox News.

The Stargate project is committed to investing an initial amount of $ 100 billion in the project, and up to $ 500 billion over the next four years.

The Public Fund of Abu Dhabi, MGX and Oracle, IA -oriented, also finance the project, while Arm, Microsoft and Nvidia, owned by SoftBank, will be technological partners.

According to companies, the project initially consists of building a data center in Texas, where construction is already underway.

Before its entry into office, Trump unveiled an Emirati investment of $ 20 billion in American data centers this month, as well as a previous promise of SoftBank investment.

– ‘Immediately’ –

Softbank, led by the flamboyant Japanese magnate Masayoshi Son – who announced Stargate on Tuesday with Trump, Altman and the boss of Oracle Larry Ellison – refused to comment.

In its Tuesday declaration, the Japanese investment group said it “would start immediately $ 100 billion” for the project.

The actions of the company increased by around 6 percent Thursday, after winning more than 10 percent Wednesday.

The Technological Information media said SoftBank and Openai foresee each to hire $ 19 billion in Capital in Stargate, Bloomberg News reported.

The two companies would then each hold 40 percent, said the information, citing the comments of Altman to his colleagues.

He added that Oracle and MGX would each bring about $ 7 billion, the rest of the money from limited partners and loan funding.

Her son, 67, founded Softbank in her twenties. He made the first spectacularly successful bets on Yahoo! and Alibaba but also some disastrous investments like in WeWork.

During Trump’s first term, the modest investor promised that Softbank would invest $ 50 billion in the United States and create 50,000 jobs.

Speaking alongside the US president elected at the time in December, his said that he was now going to “double the bet” with $ 100 billion and create jobs per 100,000 Americans.

ARP-KH-STU/BS

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Former Canada Open Bank leader joins Fintech startup Brim Financial.

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