‘I’m good for my $80 billion’: Microsoft CEO weighs in after Musk trashes Trump’s AI mega-project

Microsoft’s chief executive had a “gangster” response to comments by Elon Musk trashing Donald Trump’s $US500 billion AI mega-project.

Microsoft’s chief executive has gone viral for a “gangster” response to comments by Elon Musk trashing President Donald Trump’s $US500 billion ($795 billion) AI mega-project.

Mr Musk cast doubt on Wednesday about the Stargate venture, a major investment to build infrastructure for artificial intelligence led by Japanese giant SoftBank and ChatGPT-maker OpenAI, saying the money promised for the investment actually wasn’t there.

Microsoft CEO Satya Nadella was asked about the comments, which marked a rare instance of a split between the world’s richest man and Mr Trump.

“Look, all I know is I’m good for my $80 billion,” Mr Nadella told CNBC, referring to the software giant’s pre-existing $US80 billion ($127 billion) commitment to build out its AI capabilities, not the Stargate project.

“Microsoft is investing $80 billion in capital each year and this year we’re investing. I’m not particularly in the details of what [OpenAI and SoftBank are] investing. I’m going to spend $80 billion building out Azure, customers can count on Microsoft with OpenAI models being there everywhere in the world, serving OpenAI models and other models. That’s what I know.”

Microsoft CEO Satya Nadella. Picture: CNBC

Tech YouTuber Amit Kukreja shared a clip of the comments on X, writing, “Satya Nadella saying ‘I’m good for my $80B’ has got to be one of the most gangster things a Mag 7 CEO has ever said.”

Mr Musk’s comments on Wednesday marked a rare instance of a split between the world’s richest man and Mr Trump, with Mr Musk playing a key role in the newly installed administration after spending $US270 million ($430 million) on the election campaign.

In his first full day in the White House, Mr Trump on Tuesday announced the Stargate project “will invest $500 billion, at least, in AI infrastructure in the United States”.

But in a post on his social media platform X, Mr Musk said the main investors “don’t actually have the money”. “SoftBank has well under $10B secured. I have that on good authority,” Mr Musk added in a subsequent post.

Mr Musk’s swipe could be particularly targeted at OpenAI, the world’s leading AI start-up that he helped found before leaving in 2018.

The Tesla boss and OpenAI chief executive Sam Altman, who was present at the White House on Tuesday, have been mired in a serious feud with Mr Musk opening repeated lawsuits against the company behind ChatGPT.

Donald Trump, Oracle’s Larry Ellison, Softbank’s Masayoshi Son and OpenAI’s Sam Altman. Picture: Jim Watson/AFP

“Wrong, as you surely know. Want to come visit the first site already under way?” Mr Altman replied to Mr Musk on X.

“This is great for the country. I realise what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put (country) first,” he added.

Mr Trump said on Thursday he was not bothered by Mr Musk’s comments.

“He hates one of the people in the deal,” he said. “The people in the deal are very, very smart people. But Elon, one of the people he happens to hate. But I have certain hatreds of people too.”

OpenAI is one of the world’s highest valued start-ups but loses money on the high costs of turning out its expensive technology.

According to The Wall Street Journal, cloud giant Oracle, which is also involved, has about $US11 billion ($18 billion) in cash and securities. SoftBank has roughly $US30 billion ($48 billion) of cash on hand.

“The American people should take President Trump and those CEOs words for it. These investments are coming to our great country and American jobs are coming along with them,” Mr Trump’s spokeswoman Karoline Leavitt told Fox News.

Elon Musk cast doubt on the ‘Stargate’ AI mega-project. Picture: Angela Weiss/AFP

The Stargate project is committed to invest an initial $US100 billion ($159 billion) in the project, and up to $US500 billion ($795 billion) over the next four years.

Abu Dhabi’s AI-focused state fund MGX and Oracle are also providing funding for the project, while SoftBank-owned Arm, Microsoft and Nvidia will be technology partners.

According to the companies, the project is initially building a data centre operation in Texas, where construction is already underway.

Ahead of taking office, Mr Trump this month unveiled a $US20 billion ($32 billion) Emirati investment in US data centres, as well as a previous investment pledge from SoftBank.

SoftBank, headed by flamboyant Japanese tycoon Masayoshi Son — who announced Stargate on Tuesday with Mr Trump, Mr Altman and Oracle boss Larry Ellison — declined to comment.

In its statement on Tuesday the Japanese investment group said it would “begin deploying $100 billion immediately” for the project.

The firm’s shares were up around 6 per cent on Thursday, having added more than 10 per cent on Wednesday.

Technology news outlet The Information said that SoftBank and OpenAI each plan to commit $US19 billion ($30 billion) of capital to Stargate, Bloomberg News reported.

The two companies would then both own 40 per cent of it, The Information said, citing comments by Mr Altman to colleagues.

It added that Oracle and MGX would contribute about $US7 billion ($11 billion) apiece, with the rest of the money coming from limited partners and debt financing.

Mr Son, 67, founded SoftBank in his 20s. He made spectacularly successful early bets on Yahoo! and Alibaba but also some disastrous investments such as in WeWork.

In Mr Trump’s first term the rags-to-riches investor promised SoftBank would invest $US50 billion ($80 billion) in the United States and create 50,000 jobs.

Appearing alongside the then US President-elect in December, Mr Son said he would now “double down” with $US100 billion ($159 billion) and generate employment for 100,000 Americans.

— with AFP

Originally published as ‘I’m good for my $80 billion’: Microsoft CEO weighs in after Musk trashes Trump’s AI mega-project