"Everyone is saying I will destroy Elon's companies by cutting some or all of the massive subsidies he receives from the US government. Not true!", former President Donald Trump wrote on Truth Social today, referring to his former advisor Elon Musk.
The former president affirmed his desire for Musk, and all American businesses, to prosper. "The better they do, the better the US does – good for everybody. We are setting records every day, and I want to keep it that way", Trump stated.
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Former US President Donald Trump (right) and billionaire Elon Musk at the White House on 15/5/2024. Photo: AP |
Former US President Donald Trump (right) and billionaire Elon Musk at the White House on 15/5/2024. Photo: AP
This statement comes a day after White House Press Secretary Karoline Leavitt said she "didn't think Mr. Trump supported" federal agencies contracting with Musk's artificial intelligence company, xAI. When asked if Trump wanted the US government to cancel its recent agreement with xAI, Leavitt said she would discuss the matter with the former president.
xAI, along with tech companies Anthropic, Google, and OpenAI, last week signed an agreement worth up to 200 million USD with the US Department of Defense. This week, Musk's company announced a suite of products for the US government called "Grok for Government".
Musk was once a close ally after investing heavily in Trump's campaign and being tasked with cutting government spending. Their relationship deteriorated due to disagreements over budget spending and tax cuts, culminating in a public spat on social media on 5/6.
A week later, Reuters reported that the White House had directed the Department of Defense and NASA to gather information on multi-billion dollar contracts with Musk's company SpaceX, preparing for potential retaliation against the billionaire.
SpaceX is also a leading contender in the 175 billion USD "Golden Dome" missile defense program initiated by Trump. Sources familiar with the situation revealed on 22/7 that US officials appeared to be seeking alternative candidates to replace SpaceX in the project.
Nhu Tam (Reuters, Hill)
