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- Elon Musk Says 'They Simply Don't' Have The Funding, Doubts Stargate AI</p>
<p>Anusuya LahiriJuly 22, 2025 at 11:10 PM</p>
<p>Elon Musk Says 'They Simply Don't' Have The Funding, Doubts Stargate AI</p>
<p>On Tuesday, major artificial intelligence (AI) chip manufacturers, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Arm Holdings (NASDAQ:ARM), Marvell Technology (NASDAQ:MRVL), and Qualcomm (NASDAQ:QCOM), traded lower.</p>
<p>This decline comes after the reports of significant disagreements between OpenAI and SoftBank (OTC:SFTBY) regarding the operational control and execution of the ambitious $500 billion Stargate AI project, leading to a substantial scale-back of its original scope.</p>
<p>Internal feuds between OpenAI CEO Sam Altman and SoftBank founder Masayoshi Son have stalled the project, dramatically scaling back its grand vision, and drawing a sharp "I told you so" from Elon Musk, who has consistently questioned the venture's financial backing.</p>
<p>Also Read: OpenAI's 4.5 GW Lease From Oracle Fuels Stargate's $500 Billion Vision</p>
<p>The Stargate AI project, initially envisioned as a massive $500 billion initiative for building AI infrastructure, has faced severe delays due to fundamental clashes between Altman and Son.</p>
<p>Although they initially agreed to share leadership, with Altman overseeing operations and Son managing financing, their partnership has been fraught with disputes over control, governance, and strategic direction.</p>
<p>This feud has stalled significant progress, leaving Stargate without any secured data center deals and scaling ambitions back to a single, smaller facility in Ohio by year's end. The internal deadlock has sapped the project's momentum just months after its high-profile White House debut.</p>
<p>Amid a persistent shortage of Nvidia chips driven by surging AI demand, a June report indicated a growing opportunity for AMD. Companies like Oracle (NYSE:ORCL) and OpenAI are increasingly considering AMD's next-generation Instinct GPUs, specifically engineered for large-scale AI workloads, as viable alternatives for major projects such as Stargate, given Nvidia's challenges in meeting supply.</p>
<p>Arm Holdings solidified its crucial role in the AI landscape by joining OpenAI's Stargate infrastructure project in February. During the company's third-quarter earnings call, CEO Rene Haas highlighted Arm's increasing presence in data center deployments, driven by key collaborations with OpenAI, Oracle, and SoftBank.</p>
<p>Arm's chip architecture is poised to form the core of large-scale AI infrastructure for the Stargate project, beginning with an 875-acre AI campus in Abilene, Texas. This initiative will commence with a 200-megawatt data center, with plans to expand up to 1.2 gigawatts, underscoring Arm's architecture as a foundational element for future AI growth.</p>
<p>Adding to the skepticism, Elon Musk has reiterated his doubts about the Stargate project's financial viability. Reacting to the news of the stalled OpenAI and SoftBank AI infrastructure venture, Musk posted on X, formerly Twitter, referencing his earlier assertion that the project lacks actual funding.</p>
<p>"They simply don't," he wrote, responding to a user who resurfaced his earlier remark – "They don't actually have the money." Musk, whose own AI startup xAI is constructing a massive data center in Memphis, has consistently questioned the feasibility of Stargate.</p>
<p>Price Action: NVDA stock is trading lower by 1.13% to $169.48 premarket at last check Tuesday.</p>
<p>Read Next:</p>
<p>Nvidia Still A Top Pick As Microsoft, Meta Stick With GPUs Despite DeepSeek Challenge: Analyst</p>
<p>Image via Shutterstock</p>
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<p>This article Elon Musk Says 'They Simply Don't' Have The Funding, Doubts Stargate AI originally appeared on Benzinga.com</p>
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