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

Global Demand for Defense Metals Is Surging 7X - Ad

Legally "Skim" $6,361 Into Your Account? - Ad

Trump Signs Law to Launch Dollar 2.0 - Ad

The Federal Housing Finance Agency is increasing the size of home loans that the government can guarantee against default as it takes into account rising housing prices.

XRP Spikes To $2.20 On ETF Interest: Is This Rally Real?

XRP (CRYPTO: XRP) is up 4% on Tuesday, buoyed by the interest in the

The Market Just Crossed a Dangerous Line

The Market Just Crossed a Dangerous Line - Ad

The man who predicted the 2008 crash and 2020 says today's soaring markets are NOT a bubble - they're something far stranger and more dangerous. He says it's about to change everything you know about money.

Marjorie Taylor Greene Buys Blue Chip Stock Near 52-Week Low

Marjorie Taylor Greene is known for buying multiple stocks at a time, based on recent disclosures. A new filing shows one stock bought in November.

What's Going On With The Surge In Chipotle Stock Today?

Chipotle Mexican Grill Inc (NYSE:CMG) shares are trading higher on Tuesday. Here's a look at what's going on.

The U.S. Wants Metal Independence - And This Nevada Opportunity Fits the Moment

The U.S. Wants Metal Independence - And This Nevada Opportunity Fits the Moment - Ad

Washington's push for domestic copper, silver, gold, and tungsten is reshaping the resource landscape. Their neighbor's multi-metal hits, supported by $6M in federal funding and a 300%+ YTD surge, confirmed this Nevada corridor is the right kind of ground. Now another early-stage explorer has stepped into the same trend as interest accelerates.

EPAM Confident On Growth, Initiates $1 Billion Stock Buyback

EPAM Systems (EPAM) stock gained 4.41% after reporting strong third-quarter 2025 results, with sales of $1.394 billion.

Trump attacks ABC News correspondent Mary Bruce in angry response to three sharp questions

NEW YORK (AP) — President Donald Trump denounced ABC News' Mary Bruce as a “terrible reporter” Tuesday and threatened the network's license to broadcast after she asked him three sharp questions at the White House.

Elon's Optimus to Mint New "Musk Millionaires" as Soon as Jan 26?

Elon's Optimus to Mint New "Musk Millionaires" as Soon as Jan 26? - Ad

Elon Musk may be set to create more "Musk Millionaires" as soon as January 26... Because on that day, he's expected to officially launch his Optimus robot... An AI-powered robot that Elon himself says will be capable of "doing anything bar nothing". Now, it's important to point out that Elon hasn't released it to the public yet... But ahead of the launch, one Silicon Valley insider has identified a "backdoor way" for any American to invest in Optimus with a regular brokerage account...

Wendy's to close hundreds of US stores in bid to halt falling profit

Wendy’s plans to close hundreds U.S. restaurants over the next few months in an effort to boost its profit.

Schwab: Half Of US Investors May Ditch Other Assets For ETFs — 4 Funds To Watch

Nearly half of ETF investors could go all-ETF within five years, Schwab says. Here's how they're building portfolios with funds like ITOT, BND, and XLK.

Trump's DOGE Payouts Keep Flowing (Up to $32K a Year)

Trump's DOGE Payouts Keep Flowing (Up to $32K a Year) - Ad

Musk may be out, but Trump's DOGE program keeps paying. Ordinary Americans can collect up to $8,276 every 3 months - as much as $32K a year. No gimmicks, no federal workers allowed. Start with just $10 and 5 minutes before the next payout hits.

JPMorgan Forecasts Bitcoin Bottom, Anticipates $28.3 Trillion Challenge To Gold By 2026

Analysts at JPMorgan have pinpointed the lowest point of the ongoing Bitcoin (CRYPTO: BTC) price fall and also projected a substantial chall

'Rich Dad Poor Dad' Author Robert Kiyosaki Warns Of Crash In BTC, ETH, Gold, Silves Prices, But Says He's Buying, Not Selling: Here's Why

Robert Kiyosaki, author of “Rich Dad Poor Dad,” has shared his investment strategy amid predictions of an economic downturn.

If You Hold Any Dollars in Your Bank Account, Read This...

If You Hold Any Dollars in Your Bank Account, Read This... - Ad

Strange events are unfolding in the global financial system. A monetary reset dubbed the "Mar-a-Lago Accord" is quietly in motion, and the financial elite are already taking protective action. If history is any guide, you could lose up to 40% of your wealth in the next two years. Move your money before it's too late.

UPS cargo plane with 3 aboard explodes on takeoff at Louisville airport, igniting huge fire

LOUISVILLE, Ky. (AP) — A large UPS cargo plane with three people aboard crashed Tuesday while taking off from an airport in Louisville, Kentucky, igniting an explosion and massive fire that left a thick plume of black smoke over the area.

Cathie Wood Bets Big On These Stocks As Bitcoin, Ethereum Crash —Dumps Instagram Rival

On Tuesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its holdings in Bullish (NYSE:BLSH), Coinbase Glo

Why Are 21 Billionaires Moving Their Money ASAP?

Why Are 21 Billionaires Moving Their Money ASAP? - Ad

One of the biggest stock market events in 25 years is rapidly unfolding... The economist who predicted the 2008 Financial Crisis says it will be: "The Biggest Crash of Our Lifetime." It could cut the entire tech marketing by HALF.

Quantum Computer That Could 'Hack Everyone's Crypto': Why Eric Jackson Is Betting On BTQ Technologies As His Next 100-Bagger

Eric Jackson names BTQ his next 100-bagger, betting it can stop quantum computers from "hacking everyone's crypto."

California revokes 17,000 driver's licenses. But the state disputes it is over immigration concerns

California plans to revoke 17,000 commercial driver’s licenses given to immigrants after the Trump administration raised concerns about people in the country illegally receiving licenses to drive a semitruck or a bus. But Gov. Gavin Newsom said that isn't the reason.

Trump's Power Play Against China Is Making Investors Rich

Trump's Power Play Against China Is Making Investors Rich - Ad

China just cut off critical minerals, but Trump hit back with a $100T counterattack - unlocking U.S. land, declaring resources national security assets, and fast-tracking 10 projects. Four tiny stocks under $15 could soar as "Trump's Chosen Few."

Nuclear Revival Fuels Supply Fears, Industry Insider Warns

Uranium shortage looms as demand rises, especially from data centers. Paladin Energy prepares with high-grade acquisition.

Cathie Wood Makes $13.4 Million Bet On This Social Network After Earnings Crash — But Dumps Robinhood And Reddit

Ark Invest made significant trades, focusing on Pinterest, Robinhood, and Reddit amid earnings reports. They have confidence in Pinterest's potential despite recent setbacks.

Global Demand for Defense Metals Is Surging 7X

Global Demand for Defense Metals Is Surging 7X - Ad

Lithium, uranium and titanium are at the center of a global race. Nations are scrambling to secure them for fighter jets, EVs, and reactors. One N. American project could help fill the West's critical-minerals gap.

Scott Bessent Says No 'Formal Proposal' Yet From Trump On Plan To Scrap Obamacare As President Pushes For Direct Payments

No formal proposal for Obamacare replacement plan seen by Treasury Secretary Bessent, despite Trump's call to redirect funds to Americans.

Zohran Mamdani's Historic Victory Earns Him Congratulations From Bill Ackman, Bernie Sanders — Trump Wasn't 'On The Ballot,' Says President

Democrats win high-profile races despite Trump's absence and shutdown. Zohran Mamdani elected NYC mayor, Abigail Spanberger wins VA governorship, Mikie Sherrill flips NJ.

Legally "Skim" $6,361 Into Your Account?

Legally "Skim" $6,361 Into Your Account? - Ad

A former hedge fund manager is now sharing his "Skim Codes" with regular people. They're not stocks. They're not crypto. They're 18-character codes designed to profit from recent market conditions. All you have to do is punch them into an ordinary brokerage account. 84% of these codes have given people the chance to generate cash payouts so far... and his next code is going out any day now.

Donald Trump's Popularity Falls As Shutdown Drags On

President Donald Trump's approval rating has continued to drop, with the latest poll showing a significant decline, raising concerns for the Republican Party as the 2026 midterm elections approach.

Trump may become the face of economic discontent, a year after such worries helped him win big

WASHINGTON (AP) — President got a serious that he’s out of touch with their fears about a deteriorating U.S. economy.

Trump Signs Law to Launch Dollar 2.0

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

Pfizer clinches deal for obesity drug developer Metsea after a bidding war with Novo Nordisk

NEW YORK (AP) — U.S. pharmaceutical giant Pfizer signed a deal to purchase development-stage obesity drugmaker Metsera Inc., winning a bidding war against Novo Nordisk, the Danish drugmaker behind weight-loss treatments Ozempic and Wegovy.

Criminal case against Boeing over deadly 737 Max plane crashes is dismissed by a US judge

A federal judge in Texas has agreed to dismiss a criminal conspiracy charge against Boeing in connection with two that killed 346 people.

The Market Just Crossed a Dangerous Line

The Market Just Crossed a Dangerous Line - Ad

Investigators look into 'repeating bell' heard during takeoff of UPS cargo plane that crashed

LOUISVILLE, Ky. (AP) — A repeating bell sounded in the cockpit for 25 seconds as pilots tried to control a UPS cargo plane that caught fire, had an engine fall off and this week in Louisville, Kentucky, a National Transportation Safety Board member said Friday.

Furor over editing of Trump speech sparks 'existential crisis' at the BBC

LONDON (AP) — The of two top bosses over the editing of a speech by U.S. President Donald Trump dealt a huge blow to the broadcaster, which is revered by some in Britain as a national treasure but derided by others as outdated and left-leaning.

The U.S. Wants Metal Independence - And This Nevada Opportunity Fits the Moment

The U.S. Wants Metal Independence - And This Nevada Opportunity Fits the Moment - Ad

'No hire' job market leaves unemployed in limbo as threats to economy multiply

WASHINGTON (AP) — When Carly Kaprive left a job in Kansas City and moved to Chicago a year ago, she figured it would take three to six months to find a new position. After all, the 32-year old project manager had never been unemployed for longer than three months.

Summit of EU, Latin America and Caribbean nations aims to strengthen ties amid US military operation

BOGOTA, Colombia (AP) — Representatives of European, Latin American and Caribbean nations will meet Sunday in Colombia to try to strengthen ties amid divisions in the Western Hemisphere over targeting alleged drug-carrying vessels.

Elon's Optimus to Mint New "Musk Millionaires" as Soon as Jan 26?

Elon's Optimus to Mint New "Musk Millionaires" as Soon as Jan 26? - Ad

Zohran Mamdani Was Crypto Bettors' Overwhelming Favorite For New York City Mayor At 100% Odds — And He Just Won

Zohran Mamdani won the high-stakes New York City mayoral race Tuesday, a victory widely anticipated by cryptocurrency bettors, who had overwhelmingly backed the Democratic Socialist.

Trending Now