OpenAI to keep spending on data centers despite voter backlash

OpenAI will continue buying computing power even as voters reject new data center projects.

Sarah Friar, the company’s chief financial officer, confirmed on Friday that the firm is sticking to its original investment plan. She said the recent midterm election results do not change how the company approaches its infrastructure needs. The firm has been building relationships with major cloud providers for years. Friar expects this trend to continue as the company raises more capital in the future.

Local ballots in ten states showed a clear shift in public opinion. Ballotpedia analyzed the results, and CNBC gathered additional data on Wednesday. In forty-one local votes, residents backed restrictions or turned down development measures in all but one case. The opposition grew quickly over the summer. Many voters cited environmental damage, higher utility bills, and fears of job losses as their main reasons.

The stock market reacted to this changing mood. The Nasdaq index fell sharply on Thursday, marking its steepest drop in nineteen months. Shares of chipmakers and companies linked to AI infrastructure led the decline. By Friday, however, those stocks had recovered some of their value. Investors remain cautious about rising borrowing costs and the level of corporate debt in the sector.

OpenAI released a policy blueprint on Thursday to address community concerns. The document outlines commitments for future facilities that the company will own and operate. Friar noted that if the election results show a stronger focus on local issues, the company is ready to engage more with nearby residents. She stated that OpenAI relies heavily on these centers to train its models and serve its customers.

The company is also moving closer to the public markets. Friar confirmed that OpenAI filed a confidential prospectus with the Securities and Exchange Commission in June. The firm aims to debut on the stock exchange in 2027. Its rival, Anthropic, is racing to list first. Anthropic targets a Nasdaq listing for mid-November. According to its filing, Anthropic saw revenue rise by roughly 1,200 percent in the first nine months of the year to reach $33.2 billion. The company has secured purchase commitments and leases totaling about $895.4 billion, mostly for computing power.

OpenAI is currently negotiating a new funding round at a pre-money valuation of $1.25 billion. Friar described the effort as a standard financial move. She said a competent chief financial officer raises money when the opportunity arises. She added that demand for AI services remains strong across the industry.