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He Project Stargate announcement This week was surprising for many things, but above all it was surprising for one: the 500,000 million dollars that will theoretically be invested in the next four years to achieve its objectives. The figure, absolutely colossalhas generated many suspicions. And rightly so. 100,000 million to start. Of that total figure, the announcement made it clear that the companies that provided the capital would invest “100 billion dollars immediately,” but even that does not seem easily achievable. SoftBank and OpenAI, those who will invest the most. In The Information reveal that SoftBank and OpenAI will contribute $19 billion each for the Stargate project. Bloomberg duck that both will also be the ones that will have the most participation in the final company: each will have a 40% participation. Musk attacks, Altman defends himself. The announcement of the project provoked a quick reaction from Elon Musk, who stated in X that “Actually they (the companies involved) do not have the money). He later added that “SoftBank has less than $10 billion guaranteed. I have good sources.” Sam Altman responded to those allegations hours later indicating that the data that Musk provided was “Incorrect, as you probably know.” Musk and xAI compete with OpeenAI and maintain a long rivalry, but here Altman surprised further telling Musk that “I truly respect what you have accomplished and believe you are the most inspiring entrepreneur of our era.” SoftBank under review. Analyst MG Siegler indicates in your newsletter that SoftBank has about $30 billion in cash. It seems to have room for that initial investment, but there are other data that work against it. As indicated user David Manheim on X, SoftBank’s investment fund has had notable failures in the past. On Wikipedia you can see how SoftBank Vision Fund lost $27.4 billion in 2022 due to several failed investments led by Masayoshi Son, the CEO of SoftBank. Among them is the investment of 100 million dollars in FTX, which then collapsed. OpenAI burning money. There are also questions about OpenAI’s ability to invest that amount. It is true that it has raised significant sums in the latest investment rounds, but the company is a money burning machine. Arab money and debt as exits. As the aforementioned Siegler article reveals, an important part of that investment may come from the United Arab Emirates through MGX, the investment fund. Another option is to resort to debt, which has already been very common in SoftBank’s investments (they have 150,000 million invested with that formula). Meanwhile, OpenAI looks for other girlfriends (Oracle). The project is also revealing other parallel movements. In The Wall Street Journal They highlight how OpenAI is beginning to look for options for its alliance with Microsoft, something that both have admitted. At OpenAI they complain that Microsoft does not give them the computing power they need, and they seem to be testing alternatives like Google. Perhaps Oracle is also among the candidates, especially now that it will be one of the participants (along with NVIDIA) in the creation of the large data center in Texas. It seems clear that OpenAI wants to not depend so much on Microsoft (or anyone) and Stargate may be a vehicle to achieve this. Image | TechCrunch In Xataka | The money invested in Stargate has a basic problem: there is no clear or agreed plan to reach the AGI