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Musk clashes with OpenAI CEO Sam Altman over Trump-supported Stargate AI data center project

Elon Musk is clashing with OpenAI CEO Sam Altman over the Stargate artificial intelligence infrastructure project touted by President Donald Trump, the latest in a feud between the two billionaires that started on OpenAI’s board and is now testing Musk’s influence with the new presidential administration.

Trump on Tuesday had talked up a joint venture investing up to $500 billion through a new partnership formed by OpenAI, the maker of ChatGPT, alongside Oracle and SoftBank.

The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House.

Trump declared it “a resounding declaration of confidence in America’s potential” under his new administration, with an initial private investment of $100 billion that could reach five times that sum.

But Musk, a close Trump adviser who helped bankroll his campaign and now leads a government cost-cutting initiative, questioned the value of the investment hours later.

“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.”

Altman responded Wednesday to say Musk was “wrong, as you surely know” and inviting Musk to come visit the first site that is already under construction.

“(T)his 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,” Altman wrote, using a U.S. flag emoji to represent America.

The public clash over Stargate is part of a years-long dispute between Musk and Altman that began with a boardroom rivalry over who should run OpenAI, which both men helped found.

Musk, an early OpenAI investor and board member, sued the artificial intelligence company last year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits.

Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business more fully. A hearing is set for early February in a California federal court.

The world’s richest man, whose companies include Tesla, SpaceX and X, last year started his own rival AI company, xAI, that is building its own big data center in Memphis, Tennessee. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT.

Tech news outlet The Information first reported on an OpenAI data center project called Stargate in March 2024, indicating that it’s been in the works long before Trump announced it.

Another company — Crusoe Energy Systems — announced in July it was building a large and “specially designed AI data center” outside Abilene, Texas at a site run by energy technology company Lancium. Crusoe and Lancium said in a joint statement at the time that the project was “supported by a multibillion-dollar investment” but didn’t disclose its backers.

Both companies also said the energy-hungry project would be powered with renewable sources of electricity such as nearby solar farms, in a way that Lancium CEO Michael McNamara said would “deliver the maximum amount of green energy at the lowest possible cost.” Crusoe said it would own and develop the facility.

It’s not clear how and when that project became the first phase of the Stargate investment revealed by Trump. Oracle co-founder Larry Ellison said Tuesday that the Abilene project is the first of about 10 data center buildings currently being built and that number could expand to 20.

Missing from Trump’s press conference Tuesday was Microsoft, which has long supported OpenAI with billions of dollars in investments and enabling its data centers to be used to build the models behind ChatGPT and other generative AI tools.

Microsoft said this week it is also investing in the Stargate project but put out a statement noting that its OpenAI partnership will “evolve” in a way that enables OpenAI “to build additional capacity, primarily for research and training of models.”

Asked about Musk’s comments about the Stargate deal Wednesday during a CNBC interview at the World Economic Forum in Davos, Switzerland, Microsoft CEO Satya Nadella pivoted to his company’s own $80 billion plan to build out its global AI infrastructure, of which $50 billion is being spent in the U.S.

“Look, all I know is, I’m good for my $80 billion,” said Nadella, laughing.

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January 22, 2025

Meta to build $10 billion AI data center in Louisiana as Elon Musk expands his Tennessee AI facility

NEW ORLEANS — The largest artificial intelligence data center ever built by Facebook’s parent company Meta is coming to northeast Louisiana, the company said Wednesday, bringing hopes that the $10 billion facility will transform an economically neglected corner of the state.

Republican Gov. Jeff Landry called it “game-changing” for his state’s expanding tech sector, yet some environmental groups have raised concerns over the center’s reliance on fossil fuels — and whether the plans for new natural gas power to support it could lead to higher energy bills in the future for Louisiana residents.

Meanwhile, Elon Musk’s AI startup, xAI, is expanding its existing supercomputer project in Memphis, Tennessee, the city’s chamber of commerce said Wednesday. The chamber also said that Nvidia, Dell, and Supermicro Computer will be “establishing operations in Memphis,” without offering further details.

Louisiana is among a growing number of states offering tax credits and other incentives to lure big tech firms seeking sites for energy-intensive data centers.

The U.S. Commerce Department found that there aren’t enough data centers in the U.S. to meet the rising AI-fueled demand, which is projected to grow by 9% each year through 2030, citing industry reports.

Meta anticipates its Louisiana data center will create 500 operational jobs and 5,000 temporary construction jobs, said Kevin Janda, director of data center strategy. At 4 million square feet (370,000 square meters), it will be the company’s largest AI data center to date, he added.

“We want to make sure we are having a positive impact on the local level,” Janda said.

Congressional leaders and local representatives from across the political spectrum heralded the Meta facility as a boon for Richland parish, a rural part of Louisiana with a population of 20,000 historically reliant on agriculture. About one in four residents are considered to live in poverty and the parish has an employment rate below 50%, according to the U.S. census data.

Meta plans to invest $200 million into road and water infrastructure improvements for the parish to offset its water usage. The facility is expected to be completed in 2030.

Entergy, one of the nation’s largest utility providers, is fast-tracking plans to build three natural gas power plants in Louisiana capable of generating 2,262 megawatts for Meta’s data center over a 15-year period — nearly one-tenth of Entergy’s existing energy capacity across four states.

The Louisiana Public Service Commission is weighing Entergy’s proposal as some environmental groups have opposed locking the state into more fossil fuel-based energy infrastructure. Meta said it plans to help bring 1,500 megawatts of renewable energy onto the grid in the future.

Louisiana residents may ultimately end up with rate increases to pay off the cost of operating these natural gas power plants when Meta’s contract with Entergy expires, said Jessica Hendricks, state policy director for the Alliance for Affordable Energy, a Louisiana-based nonprofit advocating for energy consumers.

“There’s no reason why residential customers in Louisiana need to pay for a power plant for energy that they’re not going to use,” Hendricks said. “And we want to make sure that there’s safeguards in place.”

Public service commissioner Foster Campbell, representing northeast Louisiana, said he does not believe the data center will increase rates for Louisiana residents and views it as vital for his region.

“It’s going in one of the most needed places in Louisiana and maybe one of the most needed places in the United States of America,” Foster said. “I’m for it 100%.”

Environmental groups have also warned of the pollution generated by Musk’s AI data center in Memphis. The Southern Environmental Law Center, among others, says the supercomputer could strain the power grid, prompting attention from the Environmental Protection Agency. Eighteen gas turbines currently running at xAI’s south Memphis facility are significant sources of ground-level ozone, better known as smog, the group said.

Patrick Anderson, an attorney at the law center, said xAI has operated with “a stunning lack of transparency” in developing its South Memphis facility, which is located near predominantly Black neighborhoods that have long dealt with pollution and health risks from factories and other industrial sites.

“Memphians deserve to know how xAI will affect them,” he said, “and should have a seat at the table when these decisions are being made.”

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Sainz reported from Memphis, Tennessee. Associated Press writer Matt O’Brien in Providence, Rhode Island, contributed to this report.

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Brook is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Brook on the social platform X: @jack_brook96

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December 4, 2024

As data center industry booms, an English village becomes a battleground

ABBOTS LANGLEY, England — Originally built to store crops from peasant farmers, the Tithe Barn on the edge of the English village of Abbots Langley was converted into homes that preserve its centuries of history. Now, its residents are fighting to stop a development next door that represents the future.

A proposal to build a data center on a field across the road was rejected by local authorities amid fierce opposition from villagers. But it’s getting a second chance from British Prime Minister Keir Starmer’s government, which is pursuing reforms to boost economic growth following his Labour party’s election victory in July.

Residents of Abbots Langley, 18 miles (30 kilometers) northwest of London, worry the facility will strain local resources and create noise and traffic that damages the character of the quiet village, which is home to just over 20,000 people. Off the main street there’s a church with a stone tower built in the 12th century and, further down the road, a picturesque circular courtyard of rustic thatched-roof cottages that used to be a farm modeled on one built for French Queen Marie Antoinette.

“It’s just hideously inappropriate,” said Stewart Lewis, 70, who lives in one of the converted houses in the 600-year-old Tithe Barn. “I think any reasonable person anywhere would say, ‘Hang on, they want a data center? This isn’t the place for it.’”

As the artificial intelligence boom fuels demand for cloud-based computing from server farms around the world, such projects are pitting business considerations, national priorities and local interests against each other.

Britain’s Deputy Prime Minister Angela Rayner has stepped in to review the appeals filed by developers of three data center projects after they were rejected by local authorities, taking the decision out of the hands of town planners. Those proposals include Abbots Langley and two projects in Buckinghamshire, which sits west of London. The first decision is expected by January.

The projects are controversial because the data centers would be built on “greenbelt” land, which has been set aside to prevent urbanization. Rayner wants to tap the greenbelt for development, saying much of it is low quality. One proposed Buckinghamshire project, for example, involves redeveloping an industrial park next to a busy highway.

“Whilst it’s officially greenbelt designated land, there isn’t anything ‘green’ about the site today,” said Stephen Beard, global head of data centers at Knight Frank, a property consultancy that’s working on the project.

“It’s actually an eyesore which is very prominent from the M25″ highway, he said.

Greystoke, the company behind the Abbots Langley center and a second Buckinghamshire project to be built on a former landfill, didn’t respond to requests for comment. In an online video for Abbots Langley, a company representative says, “We have carried out a comprehensive search for sites, and this one is the very best.” It doesn’t specify which companies would possibly use the center.

The British government is making data centers a core element of its economic growth plans, deeming them “critical national infrastructure” to give businesses confidence to invest in them. Starmer has announced deals for new centers, including a 10 billion pound ($13 billion) investment from private equity firm Blackstone to build what will be Europe’s biggest AI data center in northeast England.

The land for the Abbots Langley data center is currently used to graze horses. It’s bordered on two other sides by a cluster of affordable housing and a highway.

Greystoke’s plans to construct two large buildings totaling 84,000 square meters (904,00 square feet) and standing up to 20 meters (66 feet) tall have alarmed Lewis and other villagers, who worry that it will dwarf everything else nearby.

They also doubt Greystoke’s promise that it will create up to 260 jobs.

“Everything will be automated, so they wouldn’t need people,” said tech consultant Jennifer Stirrup, 51, who lives in the area.

Not everyone in the village is opposed.

Retiree Bryan Power says he would welcome the data center, believing it would benefit the area in a similar way as another big project on the other side of the village, the Warner Bros.’ Studio Tour featuring a Harry Potter exhibition.

“It’ll bring some jobs, whatever. It’ll be good. Yeah. No problem. Because if it doesn’t come, it’ll go somewhere else,” said Power, 56.

One of the biggest concerns about data centers is their environmental impact, especially the huge amounts of electricity they need. Greystoke says the facility will draw 96 megawatts of “IT load.” But James Felstead, director of a renewable energy company and Lewis’ neighbor, said the area’s power grid wouldn’t be able to handle so much extra demand.

It’s a problem reflected across Europe, where data center power demand is expected to triple by the end of the decade, according to consulting firm McKinsey. While the AI-fueled data boom has prompted Google, Amazon and Microsoft to look to nuclear power as a source of clean energy, worries about their ecological footprint have already sparked tensions over data centers elsewhere.

Google was forced to halt plans in September for a $200 million data center in Chile’s capital, Santiago, after community complaints about its potential water and energy usage.

In Ireland, where many Silicon Valley companies have European headquarters, the grid operator has temporarily halted new data centers around Dublin until 2028 over worries they’re guzzling too much electricity.

A massive data center project in northern Virginia narrowly won county approval last year, amid heavy opposition from residents concerned about its environmental impact. Other places like Frankfurt, Amsterdam and Singapore have imposed various restrictions on data centers.

Public knowledge about the industry is still low but “people are realizing more that these data centers are quite problematic,” said Sebastian Lehuede, a lecturer in ethics, AI and society at King’s College London who studied the Google case in Chile.

As awareness grows about their environmental impact, Lehuede said, “I’m sure we will have more opposition from different communities.”

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November 2, 2024

Successful National Senior Center Month 2024 celebrated with Lifestyle Expo and Senior Games

The month of September has been officially recognized as

National Senior Center Month by the National Council on Aging, and this year, our community came together to celebrate the invaluable contribution of senior centers across the country.

Events such as the 50+ Lifestyle Expo and Senior Games not only showcased the talents and vitality of our senior population but also promoted healthy living, social engagement, and lifelong learning.

The vibrant Lifestyle Expo, that took place on Sept. 17 at the Tipton County Fairgrounds, attracted just under 150 attendees, featuring 42 exhibitors. Participants had the opportunity to explore an array of health and wellness resources, learn about technology and home products, and enjoy

engaging presentations on topics including scams and fraud, as well as balance and fall prevention.

Interactive sessions encouraged attendees to experience new hobbies, demonstrating that it’s never too late to start something new.

“In celebrating National Senior Center Month, we aim to highlight the important role senior centers play in promoting wellness and connection in our community,” said Cara Kellerman, event organizer. “The Lifestyle Expo was a remarkable success. Attendance was up more than 56 percent from the inaugural event; showing a growing interest. We are committed to providing attendees and local seniors with the resources and support they need to lead healthy, fulfilling lives.”

Additionally, the Senior Games that took place on Sept. 24 and 26, brought together more than 100 members of the Encore Center. Members competed in a wide range of activities including

Bingo, The Price is Right (and other game shows), Mini Golf, Corn Hole and even card games.

The games featured great prizes and emphasized the importance of staying active with friendly competition, fostering camaraderie among participants.

The events succeeded in fostering community engagement and raising awareness about the diverse programs and services offered by senior centers nationwide. Local organizations and businesses partnered with Encore to ensure that every aspect of the month was thoughtfully curated

with the actively aging population in mind.

Encore extends its heartfelt gratitude to everyone who participated, volunteered, and contributed to making this year’s National Senior Center Month a resounding success. Together, they reaffirm the commitment to enhancing the lives of seniors in the community through continued support and innovative programs.

For more information about our senior center activities and programs, please visit www.encoreceneter.org, www.facebook.com/encorecentertipton, or call 765-675-4746 extension 12.

(The mission of the Tipton County Council on Aging is to enrich the quality of life for Tipton County adults 60+ by providing programs and services that support independence, healthy aging, and social connection.

The center is located at 900 E Jefferson St., Suite A, in Tipton and is open Monday through Friday from 8 a.m. to 4 p.m.

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October 9, 2024