However, shortly after this news was announced on Tuesday, OpenAI CEO Sam Altman written the that Microsoft and OpenAI were not parting ways, saying it was a “very important and huge partnership, for a long time to come.”
Critics take aim, Musk expresses skepticism
Some frequent OpenAI critics, like tech writer Ed Zitron, have already begun to question whether Stargate can provide the $100 billion in initial funding, much less the $500 billion they hope to raise over time. time.
After the information reported that OpenAI and SoftBank each committed $19 billion to new venture Zitron wrote on BlueSky, referring to OpenAI 5 billion dollars in losses in 2024, “Oh my god, this is completely ridiculous. OpenAI is going to raise another $19 billion in debt/equity? This company is losing over $5 billion a year! So what, they’re raising $19 billion to Stargate, and then what, another 10 billion dollars just to survive?
Screenshots of Elon Musk disputing Stargate’s X announcement.
Shortly after Stargate’s announcement on Tuesday, Trump ally and frequent Altman foe Elon Musk immediately attacked the Stargate plan on X, while writing“They don’t really have any money”, and continuing with a claim we cannot substantiate, adage“SoftBank has secured well under $10 billion. I have that on good authority.”
Musk’s criticisms have complex implications given his very close ties to Trump, his history of litigation against OpenAI (which he co-founded and then left), and his own goals with his company xAI.
Wednesday morning, Altman replied on
Altman too address Musk’s claims that he does not have the requested amounts, saying: “That’s false, as you probably know. Do you want to come and visit the first site already in progress? 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 prioritize 🇺🇸.
This article was updated on January 23, 2025 to include details on OpenAI’s 2024 “Stargate” plan with Microsoft. It also adds Ed Zitron’s criticism and more information on Sam Altman’s response to Musk’s criticism.
