According to The Wall Street Journal, Elon Musk attempted to use his influence — and Donald Trump’s name — to derail a major AI data center deal between OpenAI and the UAE. The project, called Stargate UAE, is expected to become one of the largest artificial intelligence facilities in the world.

Musk Wanted His Company xAI Involved

Sources familiar with the negotiations said Musk called executives at G42, the UAE-based AI company, warning them that their deal wouldn’t receive approval from President Trump unless his own AI startup, xAI, was included in the project.

The call reportedly happened just days before Trump’s visit to the Gulf in mid-May. Musk, having learned that Sam Altman would be involved in the deal, allegedly reacted with frustration. WSJ reports that Musk was furious Altman was leading what could become the biggest overseas AI investment by a U.S. firm — and he wasn’t part of it.

Stargate UAE Approved by Trump, Despite Musk’s Objections

Although Musk’s push prompted a temporary review, the Trump administration ultimately approved the deal, which was officially announced on May 22.

White House press secretary Karoline Leavitt praised it as “another great deal for the American people, thanks to President Trump and his exceptional team.”

The Stargate project is being built in partnership with OpenAI, G42, Nvidia, Oracle, Cisco, and SoftBank. The first phase — a 200-megawatt AI data center — is expected to be completed by the end of 2026. Future expansion aims to boost capacity to 1 gigawatt, making it one of the most powerful AI hubs globally.

Chips, Billions, and Political Chess

The project also includes a crucial policy shift: the Trump administration lifted export restrictions on advanced AI chips originally imposed during Biden’s presidency.

Under the new deal, the UAE is allowed to import up to 500,000 AI chips annually. In return, they committed to massive U.S. investments, including:

🔹 $1.4 trillion in American infrastructure

🔹 $2 billion into a Trump-linked cryptocurrency

🔹 Hosting top U.S. CEOs at high-level forums in Abu Dhabi

Musk vs. Altman: A Long-Running Rivalry

Musk and Altman co-founded OpenAI in 2015, but Musk left in 2018 after a power struggle. Since then, he has sued Altman and publicly labeled him as “untrustworthy” and “Scam Altman.”

In January, Musk also criticized the U.S.-based Stargate AI project on his platform X, questioning its financial backing — which many interpreted as a veiled attack on Altman’s role.

G42 Picks OpenAI for Now — But xAI May Still Play a Role

Despite Musk’s objections, G42 has chosen to move forward with OpenAI as the lead partner. However, Musk’s xAI may still find opportunities in the region’s booming AI sector.

G42’s own MGX fund was one of the top backers in xAI’s $6 billion funding round last December. And xAI is now reportedly on a short list of U.S. companies conditionally approved for access to newly authorized AI chips.

One-Minute Summary

Elon Musk reportedly tried to block OpenAI’s landmark AI data center deal in Abu Dhabi unless his company xAI was included. He warned that Trump’s approval wouldn’t happen otherwise. Despite this, the Trump administration backed the Stargate UAE project, now led by Sam Altman and OpenAI. Musk may still find future AI opportunities in the Gulf — but for now, Altman holds the lead.

🤔 Is Musk playing too hard, or just protecting his stake in the global AI race?


#ElonMusk , #SamAltman , #OpenAI , #worldnews , #Musk

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