Elon Musk Mocks SoftBank's Reported $100B AI Fundraising Plan: 'Only A Fool Would Give Them Money'

• Musk’s xAI is positioning Grok to compete with OpenAI’s ChatGPT and Google’s Gemini.
• SoftBank is reportedly in talks with Gulf investors for the new AI fund.
• The Japanese investor’s costly AI bets come amid high-yield borrowing and questions about its financing strategy.

Elon Musk has taken a swipe at SoftBank after the Japanese investment giant reportedly sought to raise as much as $100 billion from Gulf investors for a new artificial intelligence fund. 

“Only a fool would give them money,” Musk wrote on X in response to a post about a planned fundraise.
 

Musk Takes Aim At SoftBank’s AI Ambitions

Musk has put himself at the center of the AI race through a sprawling business empire spanning Tesla (TSLA), SpaceX, xAI and its chatbot Grok. 

His AI ambitions have also led to repeated clashes with OpenAI CEO Sam Altman, whom he has sued over the company’s shift from a nonprofit structure to a for-profit model. Musk co-founded OpenAI in 2015 but left its board in 2018.

The latest jibe comes as technology companies and investors race to secure the capital, computing infrastructure and talent needed to compete in AI. 

Musk’s xAI is developing Grok to challenge OpenAI’s ChatGPT and Google’s Gemini, while his other businesses offer potential avenues to deploy AI across autonomous driving, robotics and space-based infrastructure.

SoftBank Eyes $100 Billion Gulf Fund For AI Expansion

SoftBank, meanwhile, is looking to expand its already substantial exposure to the technology. According to a Financial Times report, Son has held discussions in recent weeks with senior figures in the United Arab Emirates and other Gulf investors about raising as much as $100 billion. 

The proposed fund would acquire companies and improve their operations using AI and other advanced technologies. SoftBank’s robotics and physical AI business, Roze, is expected to play a key role in the strategy.

The fundraising effort would add to SoftBank’s major commitment to OpenAI. The company has committed billions of dollars to the ChatGPT maker.

However, the same exposure has raised questions about its financing strategy. SoftBank raised more than $11 billion through a high-yield bond sale last month, with yields reaching 9.75%, highlighting the cost of financing its bets.

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