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Musk Slams Trump-backed AI Mega Project

Elon Musk, right, and Google CEO Sundar Pichai arrive before the 60th Presidential Inauguration in the Rotunda of the US Capitol in Washington, Monday, Jan. 20, 2025. (AP)
Elon Musk, right, and Google CEO Sundar Pichai arrive before the 60th Presidential Inauguration in the Rotunda of the US Capitol in Washington, Monday, Jan. 20, 2025. (AP)
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Musk Slams Trump-backed AI Mega Project

Elon Musk, right, and Google CEO Sundar Pichai arrive before the 60th Presidential Inauguration in the Rotunda of the US Capitol in Washington, Monday, Jan. 20, 2025. (AP)
Elon Musk, right, and Google CEO Sundar Pichai arrive before the 60th Presidential Inauguration in the Rotunda of the US Capitol in Washington, Monday, Jan. 20, 2025. (AP)

Elon Musk on Wednesday cast doubt on a $500 billion AI project announced by US President Donald Trump, saying the money promised for the investment actually wasn't there.

The comments were a rare instance of a split between the world's richest man and Trump, with Musk playing a key role in the newly installed administration after spending $270 million on the election campaign.

In his first full day in the White House, Trump on Tuesday announced a major investment to build infrastructure for artificial intelligence led by Japanese giant SoftBank and ChatGPT-maker OpenAI.

Trump said the venture, called Stargate, "will invest $500 billion, at least, in AI infrastructure in the United States."

But in a post on his social media platform X, Musk said the main investors "don't actually have the money."

"SoftBank has well under $10B secured. I have that on good authority," Musk added in a subsequent post.

Musk's sideswipe could be particularly targeted at OpenAI, the world's leading AI startup that Musk 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 Musk opening repeated lawsuits against the company behind ChatGPT.

OpenAI is one of the world's highest valued startups, 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 $11 billion in cash and securities. SoftBank has roughly $30 billion of cash on hand.

The Stargate project is committed to investing an initial $100 billion and up to $500 billion over the next four years in the project.

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Day 3 of LEAP25 Conference in Riyadh Sees $1.79 Billion in Technology Investments

The third day of the LEAP25 conference in Riyadh featured a series of investments by major technology companies and startup rounds, reinforcing Saudi Arabia’s position as a regional hub for technology and innovation. (SPA)
The third day of the LEAP25 conference in Riyadh featured a series of investments by major technology companies and startup rounds, reinforcing Saudi Arabia’s position as a regional hub for technology and innovation. (SPA)
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Day 3 of LEAP25 Conference in Riyadh Sees $1.79 Billion in Technology Investments

The third day of the LEAP25 conference in Riyadh featured a series of investments by major technology companies and startup rounds, reinforcing Saudi Arabia’s position as a regional hub for technology and innovation. (SPA)
The third day of the LEAP25 conference in Riyadh featured a series of investments by major technology companies and startup rounds, reinforcing Saudi Arabia’s position as a regional hub for technology and innovation. (SPA)

The third day of the LEAP25 conference in Riyadh featured a series of investments by major technology companies and startup rounds, reinforcing Saudi Arabia’s position as a regional hub for technology and innovation and a global destination for tech and artificial-intelligence (AI) investments.

Tuesday's announced investments totaled $1.79 billion, focusing on digital talent development; support for research, development, and innovation; AI; cloud computing; and strengthening technological infrastructure.

The Saudi Communications, Space, and Technology Commission (CST) announced the launch of the third cohort of the Emerging Technology Regulatory Sandbox, enabling innovators and startups to test new technologies in a flexible and secure regulatory environment and facilitating their market entry.

Equinix announced the launch of the region's largest cloud-computing data center, with an investment exceeding $1 billion, further solidifying the Kingdom’s position as a global hub for cloud service providers and technological innovation.

White Helmets announced the launch of the "Asif" AI agent to enhance efficiency and accuracy in construction projects, keeping pace with future developments.

At the investment fund level, Hands On Global Management announced the launch of a $300 million fund to develop and distribute games locally and internationally. The company also revealed plans to establish a new headquarters in the Kingdom to support the growth of the gaming industry and expand its global reach.

In support of startups, the National Technology Development Program (NTDP) launched accelerators and funding funds worth $150 million to foster innovation in the information-technology (IT) sector and drive the growth of tech startups in Saudi Arabia.

Joa Capital launched the first infrastructure fund in partnership with Buildnow Trading, with an $80 million investment to meet the needs of the Kingdom's thriving construction sector.

Ula Capital announced the launch of the first Saudi fund dedicated to investing in applied AI and deep tech projects, with a value of $75 million, to strengthen the Kingdom’s leadership in these advanced fields and support technological innovation in the region.

To reinforce the Kingdom’s position as a leading driver of innovation and growth in the region, Sharaka Financial announced the launch of a $30 million investment fund to support the growth of startups across the Middle East and North Africa.

Meanwhile, Orbit Startups, in collaboration with Sanabil Investments, introduced a $60 million accelerator program aimed at investing in 200 early-stage tech startups.

Regarding startup funding rounds, Merit announced the successful completion of its Series B investment round, securing $28 million to enhance its innovative tech solutions and expand its global market presence.

In addition, UltiAcademy secured $28 million in a Series B funding round led by Rua Ventures, with key participation from the Jordan Investment and Venture Capital Fund. The investment will support the company’s expansion in the Kingdom and the launch of a generative AI-powered digital learning platform to enhance the digital learning experience across the region.

BRKZ closed the second phase of its Series A funding round, securing $22.5 million to expand the smart construction sector in the Kingdom through advanced technology solutions, supporting smart-city projects.

Buildnow announced securing $9.76 million in funding, led by Arbah and STV, to boost its advanced digital solutions for the construction supply chain across the Middle East and North Africa.

Hydratac Inc. announced a $3 million investment in Hands On Global Management’s fund to develop military shooting simulation games, aiming to drive innovation in the regional gaming industry and expand interactive experiences in this field.

As part of efforts to develop national digital talent, Microsoft announced a collaboration with the National Academy of Information Technology to launch the region’s first datacenter academy, offering specialized programs in AI and technological infrastructure.

Huawei announced the expansion of its investments in digital talent development with the launch of the AI Knowledge Hub, aimed at promoting lifelong learning and training 25,000 people.

Meanwhile, Accenture revealed the establishment of its first academy in the region, focusing on cybersecurity, data and AI, digital engineering and manufacturing, and emerging technologies, with a target of training 15,000 individuals.

Atomcamp announced the launch of a regional academy to provide advanced education in data science and AI, aiming to enhance the capabilities of talent in the Kingdom and the region, with a target of training 20,000 people.

Torod company closed its Series A funding round, raising $11.3 million, led by Waed company, to support the development of the first AI-powered logistics agent.