Elon Musk Expresses Doubts About $500 Billion AI Venture Touted By Donald Trump - Update

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President Trump appeared with three prominent tech executives to unveil a private sector plan to develop AI infrastructure in the United States, with a potential investment of up to $500 billion.

But just hours after the announcement, one of Trump's key supporters, Elon Musk, voiced his skepticism.

The venture will be called Stargate, and it will consist of OpenAI, Oracle, and SoftBank.

“I believe it’s going to be something truly exceptional,” Trump said to reporters from the Roosevelt Room. “It may possibly lead to the largest and most significant outcome of all.”

Joining Trump were Oracle's chief technology officer Larry Ellison, Softbank's CEO Masayoshi Son and OpenAI's CEO Sam Altman. “We wouldn’t be able to do this without you, Mr. President,” Altman said.

On Tuesday, according to a Reuters report, President Trump cancelled an executive order signed by President Biden intended to mitigate the risks of AI, which required companies to share the results of safety tests with the U.S. government before publicly releasing AI systems.

One notable absentee at the announcement was Elon Musk, an ally of Donald Trump who was put in charge of the Department of Government Efficiency. However, Musk has long expressed concerns about the risks of AI and took to X on Tuesday night to question whether the Stargate organization had the necessary investment backing.

Musk stated that they actually don't have the funds.

He added, "SoftBank has well under $10 billion secured. I have that on good authority."

He brought up competition from China as a reason for speeding up the Stargate project.

Ellison told reporters that 10 data centers are currently being built in Texas, with each exceeding 500,000 square feet in size. This expansion will ultimately reach 20 facilities, according to him. Ellison and other company officials highlighted the potential for AI to have a significant impact in healthcare and medicine. Altman noted that this venture would be "the most important project of this era," aiming to establish the new industry in the United States and create "hundreds of thousands of jobs."

Some people are concerned that AI could lead to a large number of people losing their jobs, and this concern was brought up during a series of Senate forums that included experts, executives, union leaders, and others, with the goal of creating rules to control the development of new AI technology. However, no specific laws were ever passed by Congress.

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