Tag: Backers

  • Elon Musk bashes the $500 billion AI project Trump announced, claiming its backers don’t ‘have the money’




    CNN
     — 

    Shortly after President Donald Trump announced a new massive AI infrastructure investment from the White House, “First Buddy” Elon Musk tried to tear it down.

    “They don’t actually have the money,” Musk wrote on his social media platform X. “SoftBank has well under $10B secured. I have that on good authority.”

    Trump said the investment will create a new company, called Stargate, to grow artificial intelligence infrastructure in the United States. The leaders of SoftBank, OpenAI and Oracle stood alongside Trump during the announcement. Their respective companies will invest $100 billion in total for the project to start, with plans to pour up to $500 billion into Stargate in the coming years.

    OpenAI CEO Sam Altman, accompanied by President Donald Trump, Oracle CTO Larry Ellison (R), and SoftBank CEO Masayoshi Son (2nd-R), at the announcement of an investment in AI infrastructure.

    The comments are a notable takedown of a major White House project from someone that is in Trump’s innermost circle. As a sign of how involved Musk is in the first days of the administration, Musk said he was in the Oval Office on Tuesday as Trump signed a pardon for Ross William Ulbricht, founder of the dark web marketplace SilkRoad. Musk had also dispatched a top staffer from his SpaceX and X companies to help ensure the release of convicted January 6 rioters after Trump signed a blanket pardon.

    But perhaps it should not be a surprise that Musk is going after an OpenAI initiative. Musk is in an ongoing lawsuit with OpenAI and its CEO Sam Altman, who was at the White House for the announcement. Musk, who has said he “doesn’t trust” Altman, claims in the lawsuit the ChatGPT has abandoned its original nonprofit mission by reserving some of its most advanced AI technology for private customers.

    The companies involved in Stargate have not publicly disclosed how they will contribute the funds, but they don’t necessarily need the money in the bank to support it — they could raise debt or sign on other equity investors.

    White House press secretary Karoline Leavitt on Wednesday rebuffed Musk’s comments, saying in a Fox News interview, “the American people should take President Trump and those CEOs’ words for it.”

    “President Trump is very excited about this infrastructure announcement in the field of AI, which is obviously growing, and something the United States of America needs to capitalize on, because our adversaries, such as China, are very advanced in this field,” Leavitt said. “So, 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.”

    Altman replied directly to Musk’s claim on X, writing “wrong, as you surely know. want to come visit the first site already under way? this is great for the country. i realize 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 (America) first.”

    A source familiar with Stargate said Musk’s assertion is not true.

    Softbank, the source pointed out, has $24.3 billion of cash on its balance sheet per its latest earnings and that it is comfortable taking on more debt to help fund the project, the wherewithal to access more capital.

    The source pointed out that MGX has $100 billion in capital commitments, Oracle has $11 billion in cash on its balance sheet and OpenAI recently announced it has more than $10 billion from its recent round of venture capital.

    Satya Nadella, CEO of Microsoft, which is working with OpenAI on Stargate, said on CNBC Wednesday “all I know is I’m good for my $80 billion.”

    DJ Judd contributed to this report.



    Elon Musk recently criticized the $500 billion AI project announced by President Trump, stating that the backers of the project don’t “have the money” to successfully execute such a massive endeavor. Musk, who is known for his skepticism about the potential dangers of artificial intelligence, expressed concerns about the feasibility and funding of the ambitious project.

    In a series of tweets, Musk questioned the financial capabilities of the project’s backers, suggesting that they may not have the resources necessary to support such a large-scale initiative. He also raised doubts about the practicality of the project, warning that it could potentially lead to unforeseen consequences if not carefully managed.

    Musk’s comments have sparked a debate within the tech community about the viability of President Trump’s AI project and the potential risks associated with investing in such advanced technologies. While some experts have expressed support for the project, others have echoed Musk’s concerns about the financial and logistical challenges that could arise.

    As the debate continues, it remains to be seen whether President Trump’s $500 billion AI project will move forward as planned or face additional scrutiny from critics like Elon Musk.

    Tags:

    Elon Musk, AI project, Trump, $500 billion, technology, artificial intelligence, investment, funding, innovation, criticism, backlash, financial concerns, skepticism, future technology, tech industry, Elon Musk quotes

    #Elon #Musk #bashes #billion #project #Trump #announced #claiming #backers #dont #money

  • MAGA Civil War Erupts as Trump Backers Turn on Vivek Ramaswamy Over H-1Bs

    MAGA Civil War Erupts as Trump Backers Turn on Vivek Ramaswamy Over H-1Bs


    What’s New

    The MAGA universe has been riven by an ongoing online debate over the H-1B visa program in the U.S.

    Supporters of President-elect Donald Trump have taken aim, in particular, at Vivek Ramaswamy, the one-time GOP presidential hopeful and incoming co-chief of the Department of Government Efficiency (DOGE).

    The Context

    Ramaswamy drew backlash from Trump and self-declared MAGA voters on Thursday when he voiced his support for bringing “highly skilled” workers from other countries, including his native India, into the U.S. via the H-1B program, which focuses on foreign workers in specialized occupations.

    Republican presidential candidate former President Donald Trump listens as former candidate Vivek Ramaswamy speaks at a campaign event in Atkinson, N.H., Tuesday, Jan. 16, 2024. The MAGA universe has erupted into a civil war over…


    Matt Rourke/AP

    “The reason top tech companies often hire foreign-born & first-generation engineers over ‘native’ Americans isn’t because of an innate American IQ deficit (a lazy & wrong explanation),” he wrote on X, formerly Twitter, on Thursday. “A key part of it comes down to the c-word: culture. Tough questions demand tough answers & if we’re really serious about fixing the problem, we have to confront the TRUTH: Our American culture has venerated mediocrity over excellence for way too long (at least since the 90s and likely longer). That doesn’t start in college, it starts YOUNG.”

    He added: “A culture that celebrates the prom queen over the math olympiad champ, or the jock over the valedictorian, will not produce the best engineers … If you grow up aspiring to normalcy, normalcy is what you will achieve.”

    Ramaswamy went on to say he hopes “our culture fully wakes up. A culture that once again prioritizes achievement over normalcy; excellence over mediocrity; nerdiness over conformity; hard work over laziness.”

    What To Know

    Ramaswamy’s lengthy social media screed drew immediate blowback from Trump supporters who back the president-elect’s hardline immigration stance, as well as some more unlikely critics.

    Among those was former South Carolina Governor Nikki Haley, who cast herself as a moderate Republican when she launched a primary campaign against Trump in the 2024 presidential cycle.

    Haley didn’t mince words when responding to Ramaswamy’s X post on Thursday, writing: “There is nothing wrong with American workers or American culture. All you have to do is look at the border and see how many want what we have. We should be investing and prioritizing in Americans, not foreign workers.”

    Mike Cernovich, a longtime right-wing media personality and provocateur, also chimed in.

    “The Woodstock generation managed to build out aerospace, the one before went to the moon, America was doing great,” he wrote in a reply to Ramaswamy. “Underlying your post is that we were all living in squalor until being rescued by H-1B’s. Then why did everyone want to come here?”

    Ramaswamy responded: “That version of America, the one that used to embody unbridled exceptionalism, is exactly what we want to return to. That’s a point about culture, not immigration policy.”

    Others on the right have also voiced support for restricting foreign workers from entering the country.

    “Why would America recruit foreign talent rather than recruit own on talent right here at home?” the prominent right-wing influencer Jack Posobiec wrote on X Tuesday. “Imagine how many more JD Vances are out there.”

    What People Are Saying

    Laura Loomer, far-right firebrand and staunch Trump loyalist, went on a racist tirade about H-1B policies after Trump tapped Sriram Krishnan as White House senior policy adviser for AI: “.@VivekGRamaswamy knows that the Great Replacement is real. So does@JDVance. It’s not racist against Indians to want the original MAGA policies I voted for. I voted for a reduction in H1B visas. Not an extension.”

    Billionaire Mark Cuban wrote in response to Ramaswamy’s post: “How do you feel about people who say ‘college is over rated ?’ In order to have more homegrown engineers, don’t we need more kids going to college ?”

    What Comes Next

    Many immigrants have voiced concerns about the second Trump administration and whether the president-elect will try to restrict H-1B visa program like he did at the end of his first term.

    Trump, as well as many of his anti-immigration allies, have previously said they would work to make cuts to the program.

    Newsweek reached out to the Trump transition for comment.





    In a shocking turn of events, a civil war has erupted within the MAGA movement as die-hard Trump supporters have turned on prominent conservative commentator Vivek Ramaswamy over his support for H-1B visas.

    Ramaswamy, a vocal Trump supporter and founder of the right-leaning organization “American Awakening,” recently came out in support of expanding the H-1B visa program, which allows skilled foreign workers to come to the United States for employment. This move has sparked outrage among many Trump backers who see the program as a threat to American jobs and wages.

    The backlash against Ramaswamy has been swift and fierce, with many on social media accusing him of betraying the MAGA movement and selling out to corporate interests. Some have even gone so far as to call for his expulsion from conservative circles.

    The rift within the MAGA movement over H-1B visas highlights the ongoing tension between economic nationalism and free-market principles within the Republican Party. It also serves as a reminder that even staunch Trump supporters are not immune to internal divisions and infighting.

    As the dust settles on this latest controversy, it remains to be seen what impact it will have on the future of the MAGA movement and the broader conservative movement as a whole. One thing is clear, however: the battle lines have been drawn, and the fight for the soul of the Republican Party is far from over.

    Tags:

    1. MAGA Civil War
    2. Trump Backers
    3. Vivek Ramaswamy
    4. H-1Bs
    5. Conservative Politics
    6. Political Conflict
    7. Trump Administration
    8. Immigration Policy
    9. Republican Party
    10. Political Tensions

    #MAGA #Civil #War #Erupts #Trump #Backers #Turn #Vivek #Ramaswamy #H1Bs