Nadella Reassures on Microsoft’s Financial Stability Amid Musk’s ‘Stargate’ Funding Doubts

January 24, 2025 – Microsoft CEO Satya Nadella has brushed off concerns raised by Elon Musk regarding the funding for the ambitious $500 billion AI infrastructure project named “Stargate”. Musk had questioned the adequacy of funds for the massive undertaking, but Nadella appeared unfazed during an interview with CNBC at the World Economic Forum in Davos.

When asked about Musk’s skepticism, Nadella calmly stated, “I just know that my $80 billion is secure.” He was referring to Microsoft’s annual investment in AI and cloud infrastructure. According to Nadella, these funds will enable the continuous expansion of Azure’s global capabilities, including support for OpenAI models.

“It’s a great day for OpenAI, a great day for Microsoft, and our investors,” Nadella said, adding that their partnership will persist and Microsoft will serve as the technical partner for Stargate. Musk later shared Nadella’s interview on X, commenting, “On the other hand, Satya definitely has the money.”

Previously, Musk had claimed that the project, which involves OpenAI, Oracle, and SoftBank, was not adequately funded. He revealed that the funds raised by SoftBank were “far less than $10 billion” and expressed doubts about whether it could meet the project’s vast financial requirements.

On January 21st, OpenAI, SoftBank Group, and Oracle announced the formation of a $500 billion joint venture to establish the “Stargate” cloud computing data center in the United States. Microsoft stated that it would provide technical support for the joint venture but would not invest funds. Dubbed the “largest AI infrastructure project in history”, it aims to cement the United States’ leadership position in the field of AI. However, specific funding arrangements and project details remain undisclosed.

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