GEGGL

OpenAI CFO Sarah Friar said the company will keep pouring money into artificial intelligence (AI) infrastructure despite growing public opposition to data centers and a sweeping voter rebuke of new developments in the midterm elections.

OpenAI Doubles Down On Data Center Investments

On Friday, speaking to CNBC’s Sara Eisen at the Citi TMT Leadership Summit in Pebble Beach, California, Friar said OpenAI remains focused on expanding its computing capacity to meet rising customer demand.

"When I think about the midterms, I need to keep thinking about how do we keep investing to meet that customer demand," she said.

Friar added that OpenAI’s relationships with major cloud infrastructure providers, alongside its ability to raise capital, would remain central to its expansion plans.

Her comments come after voters opposed or rejected pro-development proposals in all but one of 41 local ballot measures across 10 states, according to Ballotpedia and CNBC.

Concerns over electricity bills, water consumption, environmental damage and potential job losses have fueled resistance to data center projects.

"If the midterm means more focus on data centers and communities, we’re going to keep doing the work to get into those communities and to build trust with them," Friar said.

OpenAI Promises to Address Community Concerns

On Thursday, OpenAI unveiled its National Community Compact and Compute Campus Policy Blueprint, promising to cover the full cost of electricity consumed by its facilities and the infrastructure needed to support them.

The company also pledged financial safeguards to protect electricity customers if projects are delayed, scaled back or canceled.

Meanwhile, Meta Platforms, Inc. (NASDAQ:META) President Dina Powell McCormick warned that political opposition could complicate data center development.

However, she also disclosed that a newly elected governor who campaigned on opposing data center development had already sought a meeting with Meta ahead of taking office.

OpenAI Funding, IPO Plans Remain In Focus

Friar also said OpenAI is continuing to explore a potential 2027 initial public offering (IPO). The company confidentially filed its prospectus with the Securities and Exchange Commission in June.

She also confirmed that OpenAI is raising capital at a $1.25 trillion pre-money valuation.

The company has closed an initial $11 billion portion of the round and could secure another $9 billion in the coming weeks.

"A good CFO always raises money when she can," Friar said, adding that the funding round remains ongoing.

"The demand for AI is real," she added. "I don’t think anyone’s arguing with that, or if they are, I think it’s a losing argument."

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock