OpenAI will keep investing in AI data centers despite election results, CFO tells CNBC

Key points

• OpenAI CFO Sarah Friar said the company will keep investing in AI data centers after the midterms.
• Voters backed restrictions or rejected pro-development measures in 40 of 41 local ballot measures across 10 states.
• Friar said OpenAI is in talks to raise funding at a $1.25 billion pre-money valuation.

OpenAI will continue investing in artificial intelligence infrastructure despite voters' rejection of data center measures in Tuesday's midterm elections, CFO Sarah Friar told CNBC on Friday. She spoke at the Citi TMT Leadership Summit at Pebble Beach, California.

According to an analysis by Ballotpedia and additional results gathered by CNBC, voters backed restrictions or rejected pro-development measures in all but one of 41 local ballot measures across 10 states. Opposition grew over the summer amid concerns about environmental harm, higher utility bills and job loss.

Market skepticism on AI

Investors have grown skeptical of the AI trade due to higher borrowing costs, concerns about soaring debt and public backlash. The Nasdaq on Thursday had its steepest drop in 19 months, led by declines in chipmakers and neoclouds tied to the AI buildout.

Friar said she does not think the election results dramatically changed anything for OpenAI. On Thursday the company published a policy blueprint and commitments it pledged to apply to company-owned and operated data centers.

The demand for AI is real

— Sarah Friar

IPO and funding plans

OpenAI confidentially filed its prospectus with the Securities and Exchange Commission in June, and Friar said the company would continue to look into a 2027 debut. Rival Anthropic aims to reach the Nasdaq in mid-November; its revenue in the first nine months of the year jumped roughly 1,200% to $33.2 billion, according to its prospectus.

Friar said OpenAI is in talks to raise funding at a $1.25 billion pre-money valuation, and that the round is ongoing.