The Musk-Altman Feud Escalates: Stargate Project Ignites Controversy

Black and white photo of two men in suits with serious expressions, facing each other.

Jan 23, 2025
Author: Tyler R. Letren, CEO, Editor-in-Chief

In the wake of Donald J. Trump’s inauguration on January 20, 2025, a new chapter in the long-standing rivalry between tech titans Elon Musk and Sam Altman has unfolded. The announcement of the Stargate project, a massive $500 billion AI infrastructure initiative, has reignited tensions between the two former collaborators, playing out dramatically on the social media platform X.

The Stargate Announcement

On Tuesday, January 21, President Trump unveiled the Stargate project, a joint venture between OpenAI, Oracle, and SoftBank, aimed at building extensive AI infrastructure across the United States. The initiative, with an initial investment of $100 billion and the potential to reach $500 billion over four years, promises to create hundreds of thousands of jobs and solidify America’s position as a leader in AI technology.

Sam Altman, CEO of OpenAI, stood alongside Oracle’s Larry Ellison and SoftBank’s Masayoshi Son at the White House announcement, presenting a united front for this ambitious project. Nvidia, a key player in AI hardware, is also involved, though their role was not explicitly detailed in the initial announcement.

Musk’s Skepticism and Altman’s Response

Hours after the announcement, Elon Musk took to X to cast doubt on the project’s financial backing. “They don’t actually have the money,” Musk wrote. “SoftBank has well under $10B secured. I have that on good authority.”

Altman was quick to respond, refuting Musk’s claims: “Wrong, as you surely know,” he posted, inviting Musk to visit the first Stargate site already under construction. This exchange marked the beginning of a heated back-and-forth between the two tech leaders.

The Deepening Rift

The Stargate controversy is just the latest manifestation of a growing rift between Musk and Altman. Once co-founders of OpenAI in 2015, their paths diverged when Musk left the organization in 2018, citing disagreements over its direction. Since then, Musk has become a vocal critic of OpenAI, even filing lawsuits against the company for alleged violations of its original nonprofit mission.

Political Undertones

The feud has taken on political dimensions, with Musk aligning closely with the Trump administration and Altman’s past support for liberal causes coming under scrutiny. Musk, now serving as an advisor to Trump on AI matters, retweeted a 2021 post by Altman thanking Reid Hoffman for his efforts to prevent Trump’s re-election in 2020.

This political angle was further amplified by retweets from @Cernovich, highlighting the ideological divide between Musk and Altman. Meanwhile, Altman’s X account (@sama) saw increased activity as users reshared his posts from 2016, providing context to his evolving stance on AI and politics.

Controversy Surrounding Musk

Adding to the tension, Musk recently stirred controversy with a post-inauguration "hail salute" gesture, which some have associated with white power movements. This incident has cast a shadow over Musk’s involvement in the AI debate and his role in the Trump administration.

The controversy erupted during a speech at the Capital One Arena in Washington, D.C., where Musk made a gesture many likened to a Nazi salute. While thanking Trump supporters for "making it happen," Musk placed his right hand over his heart, then extended his arm forward and upward with his palm facing down. This motion, repeated twice, immediately drew comparisons to the infamous Nazi "Sieg Heil" salute, sparking outrage across social media platforms and news outlets.

Historians and experts in fascism studies weighed in on the incident. Ruth Ben-Ghiat, a historian of fascism at New York University, described it as “a Nazi salute and a very belligerent one too.” Claire Aubin, a historian focusing on Nazism in the United States, characterized Musk’s gesture as a "Sieg Heil."

However, interpretations were not unanimous. The Anti-Defamation League (ADL) cautioned against jumping to conclusions, describing it as an "awkward gesture in a moment of enthusiasm." Jared Holt, a senior research analyst at the Institute for Strategic Dialogue, expressed skepticism that it was intentional, suggesting it would be an act of “self-sabotage.”

Musk dismissed the criticism on X, stating: “Frankly, they need better dirty tricks. The ‘everyone is Hitler’ attack is sooo tired.” His response has only fueled further speculation and debate about his intentions.

The incident gains additional significance due to Musk’s prominent role in the Trump administration. As the newly appointed head of the Department of Government Efficiency, Musk’s actions and statements carry considerable weight. The controversy has energized neo-Nazi and white supremacist groups, who have celebrated the gesture regardless of Musk’s intent. It has also sparked debate in Congress and Europe about the responsibilities of public figures and the dangers of normalizing extremist symbols.

Altman’s Shifting Stance

Interestingly, despite his past political leanings, Altman has recently expressed a more conciliatory tone toward the Trump administration. In a post on X, he stated: “Watching @potus more carefully recently has really changed my perspective on him... I think he will be incredible for the country in many ways!” This apparent shift has raised eyebrows and fueled further speculation about the dynamics at play in the AI industry.

The Stakes for AI and America

As the Musk-Altman feud plays out in the public eye, the broader implications for AI development and American technological leadership loom large. The Stargate project represents a significant bet on AI infrastructure, with the potential to reshape the technological landscape of the United States.

While the personal and political drama between Musk and Altman continues to captivate public attention, the ultimate success or failure of initiatives like Stargate will likely have far-reaching consequences for the future of AI and America’s position in the global tech race.

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