Elon Musk Calls SoftBank's Masayoshi Son 'Overleveraged' As $16 Billion AI Loan Fuels Debate About Viability Of OpenAI's Stargate Project

Kaustubh Bagalkote

March 02, 2025

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk criticized SoftBank Group (OTC:SFTBF) CEO Masayoshi Son as “already overleveraged” on Sunday, reigniting concerns about funding for the ambitious Stargate AI project.

What Happened: Musk’s comments on X came in response to reports that SoftBank is in talks to secure a $16 billion loan for AI investments, with an additional $8 billion potentially being sought in early 2026, according to The Information.

The exchange highlights ongoing tensions surrounding Project Stargate, a $500 billion joint venture between OpenAI, Oracle Corp. (NYSE:ORCL), and SoftBank announced by President Donald Trump in January. The initiative aims to build massive AI infrastructure across the United States to maintain technological leadership over China.

Musk has consistently questioned the project’s financial backing. In January, he claimed SoftBank had “well under $10B secured,” adding: “They don’t actually have the money. I have that on good authority.”

Masa is already overleveraged https://t.co/h4YZqmY4Kf
— Elon Musk (@elonmusk) March 2, 2025

See Also: Mark Cuban Was Asked How He’d Invest $100K -- His Answer? Buy Bulk Toothpaste And Soup For The ‘Best Guaranteed Return On Investment’

Why It Matters: The ambitious project has significant market implications. Technology partners including Microsoft Corp. (NASDAQ:MSFT), NVIDIA Corp. (NASDAQ:NVDA), and ARM Holdings plc (NASDAQ:ARM) saw stock gains following the initial announcement.

Project Stargate plans immediate deployment of $100 billion, beginning with a 500,000-square-foot data center in Abilene, Texas, with nine additional facilities planned and potential expansion to 20 locations.

SoftBank’s Son will serve as chairman of the initiative, which OpenAI says will “secure American leadership in AI” while creating “hundreds of thousands of American jobs.”

Read Next:

Charlie Munger Shared Advice For The Young, But It Applies To All: ‘If You’ve Got Anything You Really Want to Do, Don’t Wait Until You’re 93’

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

Recommended

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Copper's Spiking - And This Junior Has the Grades to Match - Ad

A Historic Gold Announcement Is About to Rock Wall Street - Ad

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

Jeff Bezos, Lauren Sanchez Get Married In A $50 Million Wedding In Venice: From Foam Party On His $500 Million Yatch To Goodie Bags, Here's What We Know

Jeff Bezos and Lauren Sánchez's extravagant $50 million wedding in Venice included a foam party on his $500 million yacht.

Make This Move Before Nvidia's Critical Update (Unique Play)

Make This Move Before Nvidia's Critical Update (Unique Play) - Ad

Nvidia's CEO is about to say five simple words that could ignite the next explosive phase of the AI boom. It's not about tariffs or China--but it could change everything. This moment could define the biggest profit wave yet.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

BigBear.ai (BBAI) Stock Soars 21%: What's Going On?

Shares of BigBear.ai are trading sharply higher Tuesday afternoon. The rally comes without any new company-specific announcements.

The Tesla Shock Nobody Sees Coming

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

FDA requires updated warning about rare heart risk with COVID shots

WASHINGTON (AP) — said Wednesday it has expanded existing warnings on the two leading COVID-19 vaccines about a rare heart side effect mainly seen in young men.

Goldman Just Launched Two New Bond ETFs; Here's Why Investors Should Pay Attention

Goldman Sachs Asset Management debuts two new actively managed fixed income ETFs in response to rising demand for active strategies in a volatile rate landscape.

Trump's Exec Order #14154 Could Be a "Millionaire-Maker"

Trump's Exec Order #14154 Could Be a "Millionaire-Maker" - Ad

Trump's next move could cement his legacy--and trigger a historic wealth boom. Ex-presidential advisor Jim Rickards reveals how it could hand millions a shot at true financial freedom. Watch the urgent interview while it's still free.

After Diddy's conviction, here's where his business ventures stand

LOS ANGELES (AP) — Sean “Diddy” Combs has been in his federal sex trafficking trial, but that doesn't mean the once-celebrated music mogul will see his business empire restored.

How to manage ADHD at work and turn it into a strength

NEW YORK (AP) — Jeremy Didier had taken her son to a psychologist for a when she spotted an article about women with the condition. As she read it in the waiting room, she thought to herself: They're describing me.

Elon's New Device Could Launch Biggest IPO of the Decade

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Netflix's Squid Game Finale Takes Over Seoul With Massive Parade, Star-Studded Fan Event

Netflix celebrated the finale of Squid Game with a parade and fan event in Seoul, featuring characters and emotional reflections from cast.

Trump vents online about service provider after conference call marred by glitch

WASHINGTON (AP) — On Monday afternoon, the president of the United States was just another person complaining online about his service provider.

How to Hack a $1.3T Market

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

DOGE-Fame 'Big Balls' Is Reportedly Leaving The Government Department Once Headed By Elon Musk — Dogecoin Price Rises

Another key figure at the Department of Government Efficiency, nicknamed “Big Balls”, has reportedly stepped down, following the exit of Elon Musk from the federal initiative meant to reduce wasteful spending.

Bitcoin, Ethereum, Dogecoin Slide Even As Q2 Turns Profitable For Crypto: Analyst Warns About Decline In BTC If The Apex Coin Doesn't Close Above This Level

Leading cryptocurrencies fell on Monday amid speculation that the Trump administration may have a “shadow Fed" before the term of Federal Reserve Chair Jerome Powell ends.

Is Elon's Empire Crumbling?

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Japan launches a climate change monitoring satellite on mainstay H2A rocket's last flight

TOKYO (AP) — Japan on Sunday launched a satellite to monitor greenhouse gas emissions using its mainstay rocket, which made its final flight before it is replaced by a new flagship designed to be more cost competitive in the global space market.

A hard-right lawmaker is sworn in as Greece's migration minister

ATHENS, Greece (AP) — A hard-right lawmaker was sworn in Monday as Greece’s migration minister, replacing a fellow right-wing political heavyweight who resigned following

Putting Your Name on This List Could Hand You $1,270 on Friday

Putting Your Name on This List Could Hand You $1,270 on Friday - Ad

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

Business News Digest

AP Business Digest

Meta, KKR, Lululemon And An Industrial Stock On CNBC's 'Final Trades'

Experts predict KKR, Lululemon, Meta Platforms, and Rockwell Automation to perform well.

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

LOCALIZE IT: Tariffs could impact next year's fireworks displays and sales; see state consumer laws

EDITORS/NEWS DIRECTORS:

Ex-Amazon VP Says Working For A Bad Manager Is Worse Than Worrying About Moving Up The Career Ladder: 'One Of My Biggest Regrets…'

Former Amazon VP warns against working for bad boss. Work for someone who supports growth. Title obsession and poor leadership hurt career.

Copper's Spiking - And This Junior Has the Grades to Match

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Republicans hit major setback in their effort to ease regulations on gun silencers

WASHINGTON (AP) — Republican efforts to loosen regulations on and short-barreled rifles and shotguns have been dealt a big setback with the Senate parliamentarian advising that the proposal would need to clear a 60-vote threshold if included in their big tax and immigration bill.

FDA vaccine official restricted COVID vaccine approvals against the advice of agency staff

WASHINGTON (AP) — The working under Health Secretary recently of two COVID-19 vaccines, disregarding recommendations from government scientists, according to federal documents released Wednesday.

A Historic Gold Announcement Is About to Rock Wall Street

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Shooting Stars: Rocket Lab Breaks Records (And Stock Up 640% In Past Year), AST SpaceMobile Impresses Defense, Kuiper Grows

Here's a look at recent highlights, news catalysts and upcoming events in the space stock sector.

Bitcoin, Ethereum, Dogecoin Climb As Trump Labels Growing BTC Adoption As 'Great Thing': Sell Pressure On Largest Crypto May Be Fading Away, Says Analyst

Leading cryptocurrencies rose Sunday as President Donald Trump called Bitcoin’s growing adoption a “great thing” for the United States.

Make This Move Before Nvidia's Critical Update (Unique Play)

Make This Move Before Nvidia's Critical Update (Unique Play) - Ad

Inside The Trump Family's $620 Million Crypto Empire

Since retaking the White House, Donald Trump's reported net worth has remained broadly stable, around $6.5 billion on Election Day to roughly $6.4 billion today.

Larry Page Rejected Steve Jobs' 'Do One Thing' Well Advice, Built Everything Instead: Palo Alto CEO Nikesh Arora Recalls Google's 'Product-Obsessed' Roots

Alphabet Inc. co-founder Larry Page rejected Apple Inc.'s signature "focus on one thing" philosophy during a pivotal meeting with Steve Jobs.

The Tesla Shock Nobody Sees Coming

The Tesla Shock Nobody Sees Coming - Ad

Dan Ives Urges Apple 'To Make A Move,' Saying That Perplexity Acquisition Is 'A No-Brainer': 'It's A Matter Of When And Not If'

Tech bull Daniel Ives has urged Tim Cook's Apple to make quick moves and acquire Perplexity AI for its search engine.

Nike soars on a production shift away from China, but it warns of a $1 billion tariff hit

Nike's shares jumped at the opening bell Friday after the company said it's shifting some production away from China. But it also warned that tariffs imposed by the Trump administration will cost it about $1 billion before it makes internal changes, which include “surgical” price increases in the U.S. starting this fall.

Trump's Exec Order #14154 Could Be a "Millionaire-Maker"

Trump's Exec Order #14154 Could Be a "Millionaire-Maker" - Ad

Asia Markets Mixed, Europe Gains, Dollar Hit by Fed Concerns And Cooling Inflation - Global Markets Today While US Slept

US markets closed mixed on Wednesday, tech shares lifted Nasdaq while S&P 500 remained flat. Fed Chair Powell reiterated wait-and-see approach. Asian markets mostly up, European markets also positive with oil prices steady.

Trending Now