OpenAI to press ahead with data-centre expansion despite midterm sweep, CFO says

OpenAI remains resolute in its US data-centre expansion plans despite a recent Democratic midterm sweep that has raised concerns about increased scrutiny on these facilities, according to the company's Chief Financial Officer Sarah Friar. In an interview with CNBC, Friar emphasized the importance of continuing investments to meet customer demand, stating, "We are going to keep building out those relationships with communities so we can get the compute we need."

OpenAI recently launched GPT-6 Cyber, a model with a critical cybersecurity rating, designed to assist security researchers in identifying vulnerabilities, testing potential exploitation, and addressing issues before attackers do. The company has also taken steps to address growing opposition to data-centre expansion by ceasing the use of non-disclosure agreements with public officials and offering construction plans and potential impacts to residents.

The Democratic midterm elections saw several candidates, such as Texas Governor-elect Gina Hinojosa, pledge tighter scrutiny of data centers as a central campaign promise. This has led to a significant drop in the US stock market, with investors fearing the Democratic sweep may slow construction of the facilities crucial to the AI boom, resulting in a loss of approximately $2.5 trillion from the market.

Nevertheless, the tech giants continue to commit to data-centre expansion plans. Alphabet-owned Google announced plans to invest $17 billion to build its first data center in Wyoming, while ByteDance is reportedly considering expanding a data center project in northeastern Brazil. OpenAI has also been actively raising fresh capital, countering suggestions that it has scaled back its fundraising efforts amid the recent AI stock selloff.

The company reported a 70% quarter-over-quarter growth in business during the third quarter, with enterprise demand doubling over the same period.