Musk-Altman AI rivalry is complicating Trump's dealmaking in Middle East

Elon Musk attempted to undermine a significant artificial intelligence infrastructure agreement in the Middle East after discovering that his venture, xAI, would not be included in the project. This initiative, announced earlier this month, involves a coalition of major companies including OpenAI, Oracle, Nvidia, Cisco, and the Emirati firm G42, aiming to establish a comprehensive Stargate AI campus in the UAE. Musk expressed frustration over OpenAI, led by his rival Sam Altman, being selected for the partnership and sought to involve xAI instead, according to sources familiar with the situation who requested anonymity. Musk reportedly asserted that President Donald Trump would not endorse the deal without xAI's participation. As a result of Musk's intervention, the announcement faced delays as stakeholders, including officials from the White House, navigated the fallout. The Wall Street Journal first reported Musk's attempts to disrupt the agreement. White House press secretary Karoline Leavitt refrained from commenting on the controversy directly, stating, "The United States and the UAE have signed a groundbreaking framework agreement establishing the first AI acceleration partnership," which she described as beneficial for the American people. Although Musk was not present in the UAE during the signing, he was accompanying Trump in Saudi Arabia earlier in the trip. A senior White House official mentioned that Musk has raised concerns about fair treatment for all AI companies. OpenAI declined to provide commentary on the matter. Musk, who also leads Tesla and SpaceX, presents a complex factor in Trump's strategy to reinforce U.S. dominance in AI. He has invested nearly $300 million to support Trump's return to the White House and has been overseeing the Department of Government Efficiency (DOGE), which aims to reduce the federal workforce. Musk's tenure as a special government employee is nearing its conclusion. Over recent years, Musk has become an outspoken critic of Altman, a former collaborator and co-founder of OpenAI. Following their split, Musk has persistently voiced criticism regarding OpenAI's operational structure and its partnership with Microsoft. While xAI has been advancing its business pursuits, including acquiring Musk's social media platform X and collaborating with Telegram to launch its Grok chatbot, Musk has legally challenged OpenAI's conversion to a for-profit model, even attempting to acquire the startup for $97.4 billion earlier this year. Musk has also raised concerns about the Stargate project itself, which Trump announced in January, stating that the financial backing was questionable. Despite Musk's doubts, SoftBank later led a $40 billion investment in OpenAI, valuing the company at $300 billion. This ongoing rivalry between Musk and Altman continues to shape the landscape of AI development.