Breaking news

Elon Musk vs. Donald Trump: A Tense Moment Over $500 Billion AI Project As Stock Markets And Dollar Falter

In an unexpected turn of events, stock markets hit a pause and the U.S. dollar faltered after an ambitious $500 billion artificial intelligence infrastructure investment plan sparked tension between President Donald Trump and billionaire Elon Musk, marking the first public conflict between the two since Trump assumed office.

The plan, designed to give the U.S. a competitive edge in AI, has drawn considerable attention. The private sector, including ChatGPT creator OpenAI, Oracle, Japan’s SoftBank, and Emirati investment firm MGX, is set to launch a joint venture called Stargate, which promises to build data centers and create over 100,000 jobs in the U.S., according to Trump. Describing the initiative as a “grandiose undertaking” and “a loud declaration of confidence,” Trump lauded the venture, which will see $100 billion in initial funding, with further investments expected over the next four years. The first data center is already under construction in Texas, and twenty others are planned, each spanning half a million square meters.

The announcement sent shares in SoftBank, Oracle, Nvidia, and Arm Holdings surging—SoftBank gained 11%, Oracle rose 7%, and Nvidia and Arm rose 5% and 15%, respectively.

However, not everyone is on board. Musk, known for his candid and often controversial statements, took to social media platform X to challenge the credibility of the massive investment, suggesting that the companies involved don’t actually have the promised funds.

A source familiar with the financing of Stargate quickly refuted Musk’s claims, confirming t that the $100 billion in funding is secured through equity from the founding partners and additional co-investors.

Despite this clarification, the excitement over the Stargate project soon began to fade, impacting global stock markets. After a rally sparked by the announcement, stocks dipped—EUROSTOXX 50 down by 0.23%, the FTSE 100 by 0.3%, and the Nasdaq by 0.17%. S&P 500 futures also slipped 0.09%.

While the news initially overshadowed concerns about potential higher tariffs on U.S. goods, which could hurt global growth and fuel inflation, the focus soon shifted. Tariff threats began to limit currency movements, with the U.S. dollar index holding near a two-week low of 108.26. The euro remained steady at $1.0408.

In commodities, oil prices took a hit, and spot gold held firm at $2,754.49 per troy ounce.

This controversy surrounding Stargate pits some of the world’s wealthiest figures against each other. Musk, the world’s richest person with a net worth of $430 billion, faces off with fellow billionaires such as Larry Ellison ($231 billion), Masayoshi Son ($34 billion), Trump ($6 billion), and Sam Altman ($1.1 billion), all part of the ongoing saga surrounding this monumental AI initiative.

Donatella Versace Steps Down After 30 Years At The Helm of Fashion Empire

After nearly three decades steering the iconic Versace brand, Donatella Versace is stepping down from her role as head of the fashion house. The 69-year-old Italian designer, who inherited the reins from her late brother, Gianni, following his tragic murder in 1997, will remain with the company as its Chief Brand Ambassador. She is set to pass the creative torch to Dario Vitale, the former design and image director of Miu Miu, who will take on the position of Chief Creative Officer.

In her Instagram announcement, Donatella shared her thoughts: “Championing the next generation of designers has always been important to me,” she wrote, expressing her excitement for Vitale’s appointment. “I am thrilled that Dario Vitale will be joining us, and I am eager to see Versace through new eyes.”

While her new role shifts focus, Donatella’s deep connection to Versace remains unchanged. “Versace is in my DNA and always in my heart,” she declared. Donatella’s stewardship has firmly cemented the brand as a staple in the luxury fashion industry, with designs worn by global superstars like Dua Lipa, Angelina Jolie, and Sabrina Carpenter.

In a heartfelt reflection, Donatella expressed her gratitude: “It has been the greatest honour of my life to carry on my brother Gianni’s legacy. He was the true genius, but I hope I have some of his spirit and tenacity.” Despite her transition, she reaffirmed her commitment to the brand’s future, adding: “I will remain Versace’s most passionate supporter.”

The announcement was met with a wave of tributes from the fashion world. Celebrities like actor Damian Hurley, singer Sabrina Carpenter, and model Iris Law shared their admiration for the designer’s contribution to the industry. “We love you forever,” Hurley commented, while Carpenter called her “one and only,” and Law posted, “Love you so much.”

This shake-up in leadership comes as speculation mounts that Prada Group may be eyeing a potential acquisition of Versace from its current owner, Capri Holdings, which purchased the luxury brand for €2 billion in 2018. As Donatella steps into her new role, the future of Versace remains closely watched by both fans and industry insiders.

Uri Levine Course

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter