Stargate is Well Below 'Capital Secured,' Musk Claims from the Authority

Although the market cheers for the $500 billion Stargate project union by OpenAI, SoftBank, and Oracle, Musk doesn't buy it and claims they are actually out of cash.

OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle Chairman Larry Ellison joined President Donald Trump at the White House on Tuesday to announce the creation of a new company, Stargate. The companies will invest $100 billion initially, with plans to increase that investment to $500 billion over the coming years, and it is expected to create 100,000 jobs in the U.S., according to Trump.

The initial equity funders of Stargate are SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI handling operational responsibility. Masayoshi Son will be the chairman.

Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. The buildout is currently underway, starting in Texas, and more campuses are being evaluated across the country as final agreements are being made.

After OpenAI officially announced the news on X, Musk rebutted that the new company actually has no capital secured.

"They don't actually have the money," Musk commented. "SoftBank has well under $10B secured. I have that on good authority."

In a separate tweet, Musk also responded to the tweet "OpenAI and Microsoft are done" with "Seems to be the case."

OpenAI is unprofitable yet. The ChatGPT owner is projected to incur losses of $5 billion in 2024, compared to an estimated revenue of $3.7 billion.

SoftBank doesn't have enough cash either. The company had $25 billion in cash and equivalents on its balance sheet at the end of September 2024, according to filings.