'We've Found 14 Magic Money Computers,' Elon Musk Claims—'They Just Send Money Out Of Nothing'

Elon Musk has made another explosive claim about government waste, alleging that the U.S. Treasury and other federal agencies operate “magic money computers” that can issue payments with little oversight. Speaking on “Verdict with Ted Cruz” at the White House, Musk told Sen. Ted Cruz (R-TX) and co-host Ben Ferguson that his team had uncovered 14 such computers.

“They’re mostly at Treasury; some are at [Department of Health and Human Services]. There’s one or two at State, there’s some at [Department of Defense],” he said.

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Billions in Payments with Little Oversight

“They just send money out of nothing,” Musk said, alleging that these systems process trillions of dollars in government payments with errors that could be costing taxpayers billions.

Musk, who has been working closely with the federal government since Donald Trump returned to the presidency, claimed that government financial systems are in disarray, making it easy for waste and fraud to thrive. 

“Okay, so, you may think like the government computers all talk to each other, they synchronize, they add up what funds are going somewhere and that they're coherent and that the numbers, for example, that you’re presented as a senator are actually the real numbers,” he said. “They're not. I mean, they're not totally wrong, but they're probably off by 5% or 10% in some cases.”

He continued, “I call a magic money computer any computer which can just make money out of thin air. It just issues payments.”

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Unchecked Spending and Massive Waste

Musk also said nearly every federal agency is overspending on software licenses, media subscriptions, and credit cards. Some departments pay for software no one has ever logged into, while others have double the number of government credit cards compared to actual staff members. “I still don't have a good explanation for why this is the case,” Musk admitted.

The billionaire estimated that 80% of the problem is waste, with 20% being outright fraud. One example he highlighted was $1.9 billion allegedly given to a nonprofit linked to Stacey Abrams, a voting rights activist and two-time Georgia Democratic gubernatorial candidate. The money was meant for environmental projects, but Musk said the organization has only provided about 100 appliances so far. “Very expensive toaster,” he quipped.

Musk also pointed to cases where the government allegedly kept making payments to contractors even after contracts were supposed to be canceled. “Someone forgot to shut off the contract, and the company just kept getting money,” he said. He asked the hosts if that was waste or fraud, to which they replied, “Both.”

See Also: Elon Musk Told The U.N. If They Could Show A Plan For Ending World Hunger He'd Donate $6 Billion – ‘I Will Sell Tesla Stock Right Now And Do It'

‘Extreme Prosperity’ or ‘Killer Robots’?

In the interview, Musk also touched on the future of artificial intelligence, predicting that within 10 years, AI will be smarter than any human. He also estimated that 50% of all miles driven will be autonomous within five years, increasing to 90% within a decade.

When asked about “killer robots annihilating humanity,” Musk said there’s a 10% to 20% chance AI could pose an existential threat to humanity within the next 10 years. But he also believes that AI and robotics will make goods and services nearly free, so people won't be lacking anything—they'll just have to figure out how to find meaning in life.

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