OpenAI to press ahead with data-center expansion despite midterm sweep, CFO tells CNBC

OpenAI will continue expanding its US data-center network despite a recent Democratic midterm victory that raised concerns about stricter regulation, according to the company's Chief Financial Officer, Sarah Friar, who spoke to CNBC on Friday. When considering the midterm elections, Friar emphasized the importance of staying focused on meeting customer demand and investing to secure necessary compute resources.

OpenAI is actively engaging with local communities to counter fears that a change in congressional power could hinder industry growth. As part of its efforts, the AI leader will no longer use non-disclosure agreements with public officials when discussing future data-center sites, and it will provide residents with access to construction plans and potential impacts.

The opposition to data centers played a significant role in the midterm elections, with Democratic candidates, such as Texas Governor-elect Gina Hinojosa, making stronger scrutiny of these facilities a key campaign promise. The Lone Star State is among the fastest-growing regions for data centers worldwide. Despite the backlash, major tech companies remain committed to data-center expansion.

Alphabet-owned Google announced a $17 billion investment to build its first data center in Wyoming, while ByteDance is reportedly considering expanding a project in northeastern Brazil, bolstering its position as Latin America's leading builder of computing facilities. Friar also confirmed that OpenAI is raising new capital, countering allegations that the company has reduced its fundraising efforts amid the recent AI stock market sell-off.

The company reported a 70% quarter-over-quarter growth in business, with enterprise demand doubling in the third quarter. This growth indicates that people are using AI and deriving value from it, according to Friar. The fundraising comes as market turbulence raises questions about OpenAI's rival Anthropic's highly anticipated IPO.

Investors are questioning whether the startup can proceed with its roadshow next week and achieve a November listing, with some viewing a previously discussed $1.5 trillion valuation as too high, based on discussions with four people familiar with investor conversations.