Musk’s Skepticism Clouds Trump’s AI Plan – What’s Next for Nasdaq and Tech Stocks?

Is Trump’s $500 Billion AI Plan Built on Solid Ground?

President Donald Trump’s announcement of a $500 billion AI infrastructure initiative, dubbed “Stargate,” has generated a media frenzy and a short-term boost for some tech stocks. Promising to revolutionize America’s AI landscape, the plan involves investments from SoftBank, OpenAI, Oracle, and MGX, aiming to construct massive data centers to accelerate artificial general intelligence (AGI). However, Elon Musk’s sharp criticism has cast doubt on the viability of this ambitious project, potentially dampening investor enthusiasm.

Why Is Elon Musk So Critical of Stargate?

Musk, who was notably absent from the announcement, wasted no time attacking the project. On his social media platform, he alleged that the backers “don’t actually have the money” and singled out SoftBank for having “well under $10 billion secured.” Musk’s public feud with OpenAI CEO Sam Altman, a former colleague and current legal adversary, adds a layer of personal and competitive tension to his critique. Musk has previously accused OpenAI of straying from its nonprofit mission to pursue private commercial interests.