Stargate: Musk agrees with funding, structure concerns for Sam Altman-backed OpenAI project

Elon Musk has joined the chorus of critics questioning the viability of Sam Altman’s ambitious $500 billion “Stargate” AI infrastructure project, agreeing with concerns raised by industry insiders. Musk shared a tweet reposting Mario Nawfal’s comment that describes the project as “running on hopes and hot air,” acknowledging that major issues surrounding funding, structure, and planning still need to be addressed before the initiative can proceed.

In his tweet, Musk remarked: “They don’t actually have the money,” adding that SoftBank’s secured investment was well below expectations, with reports indicating it was “well under $10B.”

Musk’s concerns over funding and structure

According to several sources familiar with the situation, key components of the Stargate project remain in flux, with no confirmed government support or detailed financial plan. While Altman’s proposal involves SoftBank and OpenAI each contributing $15 billion, insiders claim that the rest of the funding, including further investments and debt financing, has not yet materialised.

What is Stargate ?

Stargate is a massive project aimed at building the infrastructure needed for artificial intelligence (AI) in the United States. With a budget of $500 billion, it plans to invest in things like data centers and power generation to support the development of AI technology over the next four years. The goal is to make the U.S. a global leader in AI, keeping ahead of other countries, like China, that are also working to advance in this field. U.S. President Donald Trump has called it a major step in ensuring the country’s future success and leadership in technology.