On Wednesday, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella addressed Elon Musk’s skepticism about the ambitious Project Stargate’s $100 billion funding potential.
What Happened: In an interview with CNBC, Nadella said, “All I know is, I’m good for my $80 billion,” referencing Microsoft’s annual investment in AI and cloud infrastructure.
This allocation will ensure Azure’s global capabilities continue to expand, including support for OpenAI’s models, he noted.
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“Any time a company that you’ve supported, and essentially were seed investor, raises money from others, it’s a good day,” said Nadella, when asked how this venture can benefit Microsoft.
“It’s a good day for OpenAI and a good day for Microsoft and our investors. Our partnership continues. We will be a tech partner to Stargate,” he added.
During the interview, Nadella was also asked about concerns raised by Salesforce CEO Marc Benioff regarding potential competition between Microsoft and OpenAI.
In response, the Microsoft CEO reiterated that the collaboration with ChatGPT-parent is foundational and mutually beneficial.
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Why It Matter: The Stargate project, a joint venture between OpenAI, SoftBank Group (OTC:SFTBY) (OTC:SFTBF), and Oracle Corp. (NYSE:ORCL), has drawn scrutiny over its ambitious funding goals.
The venture represents a significant step in AI development and infrastructure in the U.S., with an initial private investment of $100 billion and the potential to grow to $500 billion over four years.
Following President Donald Trump’s announcement, Musk said, “They don’t actually have the money,” and later in a separate post stated, “SoftBank has well under $10B secured. I have that on good authority.”
When Nadella’s comment reached Musk, he replied by saying, “Satya definitely does have the money.”
The project aims to construct data centers and power generation facilities to support advanced AI research and applications, marking a significant declaration of America’s technological ambitions.
In October, Microsoft reported first-quarter revenue of $65.60 billion, marking a 16% increase compared to the same period in 2023, according to data from Benzinga Pro.
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