Elon Musk tried to derail a major artificial intelligence infrastructure deal in the Middle East after learning that his startup, xAI, would be excluded from the initiative, CNBC has confirmed.

Earlier this month, OpenAI, Oracle, Nvidia, Cisco and Emirati firm G42 announced plans to build a sweeping Stargate AI campus in the United Arab Emirates. Musk was frustrated that OpenAI, led by personal rival Sam Altman, was tapped for the deal, and he intervened in an effort to get xAI involved, said a person familiar with the matter who asked not to be named in order to speak freely.

Musk argued that President Donald Trump would not approve the deal, the person said. The announcement was delayed by several days as stakeholders, including the White House, dealt with blowback from Musk, who has been engaged in a public and legal spat with Altman and OpenAI.

The Wall Street Journal first reported that Musk attempted to block the deal.

In a statement to CNBC, White House press secretary Karoline Leavitt didn’t mention the dustup.

“The United States and the UAE signed a groundbreaking framework agreement establishing the first AI acceleration partnership,” Leavitt said. “The framework advances the buildout of AI infrastructure in the United States and the UAE. This was another great deal for the American people, thanks to President Trump and his exceptional team.” 

Musk wasn’t in the UAE when the deal was signed, but was with the president in Saudi Arabia during an earlier part of the Middle East trip, according to a senior White House official. The official said Musk has relayed his concerns about the government fairly treating all AI companies.

OpenAI declined to comment. Musk didn’t respond to CNBC’s request for comment.

Musk, who is also CEO of Tesla and SpaceX, is a complicating character in Trump’s effort to solidify U.S. leadership in AI. Musk spent close to $300 million to send President Trump back to the White House, and has since been leading the Department of Government Efficiency (DOGE), slashing the size of the federal workforce. His time as a special government employee is coming to an end this month.

When it comes to AI, Musk has in recent years been a vocal critic of Altman, a former friend and colleague. The pair helped form OpenAI as a research lab in 2015, but Musk later had a public break with the project and has consistently criticized its structure and close alliance with Microsoft.

While xAI has been building its commercial efforts, acquiring Musk’s social media company X in March and this week partnering with Telegram to roll out its Grok chatbot, Musk has been trying to thwart OpenAI’s effort to convert into a for-profit entity.

Musk has sued OpenAI for breach of contract and to try and stop the conversion, and a Musk-led investor group made an unsuccessful bid to buy control of the startup for $97.4 billion in February. 

It’s also not the first time Musk has been critical of Stargate.

In January, Trump unveiled the Stargate project, with OpenAI, Oracle and Softbank committing an initial $100 billion, and up to $500 billion, of investment in AI infrastructure in the U.S. over four years. Musk was quick to cast doubt on the financing behind the project.

“They don’t actually have the money,” Musk wrote in response to an OpenAI post on his social platform X. He later added that SoftBank had “well under” $10 billion secured.

Two months later, SoftBank led a $40 billion investment in OpenAI at a $300 billion valuation.

— CNBC’s Eamon Javers contributed to this report.

WATCH: Elon Musk tried to block Sam Altman’s big AI deal in the UAE

Shares of Dell Technologies rose on Thursday in extended trading after the company raised its full-year earnings forecast and issued a stronger-than-expected forecast for the current quarter.

However, Dell’s adjusted earnings per share came up short versus LSEG estimates on in-line revenue.

Here’s how the computer maker did versus LSEG consensus estimates:

• Earnings per share: $1.55 adjusted vs. $1.69 estimated
• Revenue: $23.38 billion vs. $23.14 billion estimated

Dell said it expects $2.25 in adjusted earnings per share for the current quarter, with between $28.5 billion and $29.5 billion in revenue. That was significantly higher than LSEG expectations.

Company officials attributed the strong guidance to $7 billion in artificial intelligence systems that are expected to ship during the quarter, which are higher-margin than other Dell systems.

For the full year, Dell still expects about $103 billion in revenue, in line with LSEG expectations, but it raised its forecast for full-year adjusted earnings to $9.40, which was a 10 cent increase from the company’s prior outlook.

Dell is one of Nvidia’s primary vendors that builds systems around the chipmaker’s AI graphics processing units. Dell said on Thursday that it was seeing “unprecedented demand” for AI systems, especially for second-tier cloud providers, such as Coreweave.

Texas-based Dell said that it has $14.4 billion in confirmed orders for AI systems in its backlog that will ship in the coming quarters. It recorded $12.1 billion in confirmed AI orders during the first quarter, the company said. These numbers will turn into recorded revenue when Dell ships the system to its clients. In February, Dell said it expected $15 billion in AI server sales during its fiscal 2026, up from $10 billion last year.

Overall, Dell’s revenue grew 5% on an annual basis. It said it expects revenue to grow 8% during the fiscal year.

Dell’s server business is reported as part of its Infrastructure Solutions Group, which had $10.3 billion in sales during the quarter, a 12% rise. Of that, $6.3 billion was sales for servers and networking, and $4 billion was for computers that store data.

The company’s laptop and PC business, its Client Solutions Group, recorded $12.5 billion in sales as the global PC market is expected to recover this year after several slumping years.

The computer maker also said it significantly stepped up its shareholder capital return during the quarter, spending $2.4 billion on share repurchases and dividends during the period. It spent $2.58 billion on share repurchases for all of its fiscal 2025, which ended in January.

WATCH: Nvidia’s inference growth engine

Starbase, Texas, has notified some residents that they might “lose the right to continue using” their property as they do today, according to a memo obtained by CNBC.

The town, home to Elon Musk‘s SpaceX, is considering a new zoning ordinance and city-wide map.

The notice, sent to property owners in a proposed “Mixed Use District,” would allow for “residential, office, retail, and small-scale service uses.”

Starbase plans to host a public hearing on Monday, June 23, 2025, about the proposed new zoning and map for the town. The notice was signed by Kent Myers, a city administrator for Starbase and radiation test specialist at SpaceX according to his LinkedIn profile.

Representatives for Starbase and SpaceX did not respond to requests for further information on Thursday.

A “type-C municipal corporation,” Starbase was officially formed earlier this month after Musk’s aerospace and defense contractor prevailed in a local election. It is now run by officials who are SpaceX employees and former employees.

As of early this year, the population of Starbase stood around 500 people, with around 260 directly employed by SpaceX, the Texas Tribune reported. Most other residents of Starbase are relatives of SpaceX employees.

The company town includes the launch facility where SpaceX conducts test flights of its massive Starship rocket, and company-owned land covering a 1.6 square-mile area.

Starbase is holding its first city commission meeting on Thursday, two days after SpaceX conducted its ninth test flight of the massive Starship rocket from the Texas coast facility.

The rocket exploded during the test flight, marking a catastrophic loss and a third-consecutive setback for the aerospace and defense contractor. Following the incident, Musk, who also leads Tesla, focused on data and lessons to be learned from the explosions.

The FAA said there had been “no reports of public injury or damage to public property” on Wednesday.

The Starship system was developed to transport people and equipment around Earth, and to the Moon, and Musk envisions the rocket someday being used to colonize Mars.

Musk’s rocket maker has taken in more than $20 billion in government contracts since 2008, and is poised to take in several billion dollars annually for years to come.

Establishing Starbase as a company town helps SpaceX attain nearly unfettered permission to build, test or launch from its industrial complex on the Texas Gulf Coast.

The town is still trying to win the ability to close a main road and beaches for launch activity during the week without seeking municipal or other authority.

Here’s the text of the zoning memo sent to Starbase residents:

May 21, 2025

Dear Starbase Property Owner/Property Occupant,

Notice is hereby given that the City Commission for the City of Starbase will conduct a Public Hearing on Monday, June 23, 2025, at 9:00 a.m., at the City of Starbase temporary city hall located at 39046 LBJ Boulevard, Brownsville, TX 78521, to hear public comments, consider and act upon the adoption of a Comprehensive Zoning Ordinance and city wide Zoning Map.

Our goal is to ensure that the zoning plan reflects the City’s vision for balanced growth, protecting critical economic drivers, ensuring public safety, and preserving green spaces. You are receiving this notice because you own the above listed property that will be located in the “Mixed Use District” and will be impacted if the zoning ordinance is approved. 

The Mixed Use District allows for a blend of residential, office, retail, and small-scale service uses. A proposed zoning map is enclosed with this notice. You may view the draft zoning ordinance on the City’s website 72 hours prior to the above listed public hearing.

The City is required by Texas law to notify you of the following: THE CITY OF STARBASE IS HOLDING A HEARING THAT WILL DETERMINE WHETHER YOU MAY LOSE THE RIGHT TO CONTINUE USING YOUR PROPERTY FOR ITS CURRENT USE, PLEASE READ THIS NOTICE CAREFULLY. The foregoing notice is required by Texas Local Government Code section 211.006(a-1). The proposed zoning ordinance is based on current and existing uses.

Please contact City Administrator Kent Myers [email address redacted] with any questions or written comments. Your written comments must be submitted by 3:00 pm on June 22, 2025. Public comments may also be given at the above listed public hearing.

Best Wishes, 

Kent Myers

City Administrator, City of Starbase

[addresses redacted]

cityofstarbase-texas.com