OpenAI to Continue AI Data Center Investments Despite Election Outcomes

OpenAI's chief financial officer, Sarah Friar, stated the company will continue to invest in artificial intelligence infrastructure despite recent election outcomes. Friar made the remarks during an interview with CNBC at the Citi TMT Leadership Summit in Pebble Beach, California.

According to Ballotpedia and CNBC analysis, voters in 40 of 41 local ballot measures across 10 states backed restrictions or rejected pro-development measures for data centers. Concerns over environmental impact, utility costs, and job loss fueled opposition to the facilities over the summer.

Investor sentiment has turned skeptical toward the AI industry due to rising borrowing costs, debt concerns, and public backlash. The Nasdaq experienced its largest drop in 19 months on Thursday, driven by declines in chipmaker and neocloud stock prices, though some recovery was seen on Friday.

Friar emphasized that the election results did not significantly alter OpenAI's plans. The company recently published a policy blueprint outlining future commitments for its data centers, including efforts to engage with local communities and build trust.

OpenAI has confidentially filed its prospectus with the SEC in June, and Friar said Friday that the company would continue to look into a 2027 debut. Meanwhile, its main competitor, Anthropic, is aiming for a Nasdaq listing in mid-November after reporting a 1,200% revenue increase in the first nine months of the year.

OpenAI is currently in talks to raise funds at a $1.25 billion pre-money valuation. Friar noted that securing capital is a key part of a CFO's role, and the fundraising process is ongoing.