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.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
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.
