Reward 500 Tiger-coinsThe Stargate project claims that the three major tech giants will immediately invest $100 billion to build data centers and physical campuses, with a total investment goal of up to $500 billion.
The Big Question is: Where Will the $500 Billion Come From?
According to the latest Reuters report, OpenAI and SoftBank have each committed $19 billion to the Stargate AI data center, as reported by The Information. It seems that the two companies combined haven’t even reached $40 billion yet.
SoftBank does not have enough cash on hand to fulfill Masayoshi Son's promises. As of the end of September last year, the company had around $25 billion in cash and equivalents on its balance sheet. With the IPO of $ARM Holdings(ARM)$ Holdings, SoftBank's financial situation has improved. SoftBank holds approximately 90% of Arm.
Arm's stock rose 16% yesterday. However, it’s unlikely that Masayoshi Son would sell Arm shares to raise funds, as such a move could severely impact the stock price.
This project might end up with a much smaller scale than initially announced. Let’s see if Masayoshi Son has the ability to raise significant funds in the future.
$Microsoft(MSFT)$ saw 4% gains yesterday. Musk mentioned on Twitter that "Satya does have the money." If this project were done in partnership with Microsoft, the market might not be so skeptical about its feasibility.
Is Musk’s Public Criticism a Sign of a Rift?
Shortly after Trump announced the Stargate project, Musk publicly questioned SoftBank, saying, "He doesn't actually have that money. SoftBank can provide far less than $10 billion. I have credible evidence."
Altman challenged Musk’s views on Wednesday on X, calling his statements "wrong" and implying that Musk’s dissatisfaction stems from the project potentially competing with his own AI ventures.
The discord between Altman and Musk has a long history. Just yesterday, Musk called Altman a "complete liar" on X.
Musk has been a strong financial backer of Trump’s campaign. However, both men are strong-willed, and even during the campaign, some speculated that a fallout between Musk and Trump was inevitable—just a matter of time.
$Tesla Motors(TSLA)$ has risen nearly 60% since Trump took office. If Musk and Trump were to break ties, would these gains be wiped out? Tesla’s recent poor performance could also be attributed to the lack of any favorable policies from Trump after taking office.
Questions to discuss:
What do you think of Musk’s recent statements on the Stargate project?
What is Tesla’s outlook?
Will this project actually come to fruition?
Which company stands to benefit the most?
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The Stargate project claims that the three major tech giants will immediately invest $100 billion to build data centers and physical campuses, with a total investment goal of up to $500 billion.
According to the latest Reuters report, OpenAI and SoftBank have each committed $19 billion to the Stargate AI data center, as reported by The Information. It seems that the two companies combined haven’t even reached $40 billion yet.
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What do you think of Musk’s recent statements on the Stargate project?
What is Tesla’s outlook?
Will this project actually come to fruition?
Which company stands to benefit the most?
Rewards:
Leave your comments and also post to win tiger coins!