Bill Gates, co-founder of Microsoft Corp. MSFT, has criticized Tesla Inc. TSLA CEO Elon Musk's recent push for $2 trillion in U.S. government budget cuts, focusing on the dismantling of the U.S. Agency for International Development.
What Happened: Gates said, in an interview with CNN, that Musk's aggressive reductions, executed through the Department of Government Efficiency (DOGE) under President Donald Trump‘s administration, could result in millions of deaths worldwide due to the abrupt halt of foreign assistance and health programs.
Gates argued that while efficiency and the use of artificial intelligence in government are laudable goals, Musk's approach has led to slashing critical aid to vulnerable populations.
"If you show up and say, in two months, you can cut $2 trillion out of a $7 trillion budget, you're not going to succeed," Gates said. "So you go for the softest things and things that are overseas, that you can mischaracterize… people that he hasn't spent any time with."
Why It Matters: Gates specifically criticized Musk's false claim that the U.S. spent $50 billion on condoms for Gaza, which Musk later retracted, and condemned Musk's negative portrayal of USAID workers, calling them "heroes" and vital to America's global reputation.
The cuts have already disrupted contracts and payments to nonprofits, with aid organizations warning of deadly consequences. U.S. District Judge Theodore Chuang recently blocked further cuts and ordered DOGE to restore some USAID systems, though most contracts remain terminated.
Gates, who recently pledged to give away nearly all his wealth through the Gates Foundation, emphasized that private philanthropy cannot replace the scale of government funding for global health.
"If it was a modest cut and a challenge to be more efficient… I'm fine with that. But 80%, that's going to be millions of deaths and it's a mistake," Gates said.
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