San Francisco. XAI owner Elon Musk and OpenAI CEO Sam Altman have clashed over X. This fight is taking place over the Stargate project.
According to Xinhua news agency, OpenAI said on Tuesday that it will partner with SoftBank and Oracle to build several data centers for AI in the US.
The two companies expect to invest $100 billion initially in Stargate and $500 billion in the venture over the next four years.
“SoftBank and OpenAI are the principal partners of Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility,” the joint statement said.
“They actually have no money,” Musk wrote in a series of posts on X on Tuesday.
“SoftBank has secured an amount of less than $10 billion. I have received information about this from a good source.”
Altman hit back at Musk in an X post on Wednesday.
Responding to Musk's allegation that SoftBank is short on capital, Altman said, “Misinformation, and you certainly know it.”
Altman said Stargate is great for the country.
“I realize that what is good for the country may not always be in line with what your companies want, but with the new responsibility you have received, I hope you will put America first.”
Like OpenAI, XAI is also looking for infrastructure to develop its AI systems.
According to a report by TechCrunch, it is estimated that Musk's company has spent $12 billion on its single data center in Memphis and may spend billions more in upgrading the facility.
Musk, who is an early investor and board member of OpenAI, sued Altman's company last year, alleging the company misappropriated a nonprofit research laboratory that works for the public good rather than turning a profit. as having betrayed its founding purposes.
The world's richest man, whose companies include Tesla, SpaceX and XAI, last year launched his own rival AI company, XAI, which is building its own massive data center in Memphis, Tennessee.
Tech news outlet The Information first reported on the OpenAI data center project called Stargate in March 2024, indicating that it was in the works long before Trump announced it.
Another company – Crusoe Energy Systems – announced last July that it was building a larger and “specially designed AI data center” at a site operated by energy technology company Lansium outside Abilene, Texas.
Crusoe and Lancium said in a joint statement at the time that the project would be “supported by a multibilliondollar investment”, but did not disclose its backers.
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Image Credit: KhasKhabar.