OpenAI plans to keep expanding the infrastructure that supports its artificial-intelligence services, even after voters in multiple U.S. local referendums rejected new data centers. Sarah Friar, Chief Financial Officer of OpenAI, told CNBC that the company is continuing to raise capital to meet growing customer demand while preparing for an initial public offering targeted for 2027.
What happened in the referendums and why it matters
In recent weeks, voters in ten U.S. states decided on a total of 41 local referendums concerning data-center development; in 40 of those votes residents approved restrictions or rejected new projects. Opposition intensified over the summer as local communities voiced concerns about environmental impacts, rising utility costs and potential job displacement.
Speaking at a professional meeting in Pebble Beach, California, Sarah Friar said the referendum results do not change the company’s strategic direction. She added, however, that OpenAI will need to invest more effort in building relationships with local communities and restoring trust. The company is also tightening collaboration with large cloud providers.
Community commitments
To address residents’ concerns the company published a package of commitments that will apply to its owned-and-operated data centers. The measures aim to increase transparency and deliver local benefits while OpenAI proceeds with infrastructure buildout.
Market effects and financing
Alongside social resistance, a tougher financing environment has emerged: higher borrowing costs and increased indebtedness have made investors more cautious about the AI sector. That sentiment was reflected in a sharp sell-off in technology stocks, with the Nasdaq index experiencing its steepest one-day drop in 19 months on Thursday. The decline was led by chipmakers that are central to AI infrastructure and cloud providers focused on AI workloads, although markets showed modest correction on Friday.
To fund competition and growth, OpenAI is currently pursuing another capital-raising round. In those negotiations the company has identified a pre-money valuation of $1.25 billion. Friar emphasized that market demand for AI is real and indisputable.
Rivals and IPO plans
OpenAI confidentially filed its offering documents with the U.S. Securities and Exchange Commission (SEC) in June, and aims to go public in 2027. Its chief rival, Anthropic, is seeking to list sooner: Anthropic plans to appear on the Nasdaq in mid-November. Anthropic’s filing shows its revenue in the first nine months of the year increased by 1,200 percent to $33.2 billion, and it has signed about $895.4 billion in purchase and lease commitments, largely for compute capacity and infrastructure.
Conclusion
Despite strong local pushback and a volatile market backdrop, OpenAI is pushing ahead with infrastructure expansion, preparing for an IPO and raising fresh capital. The company is balancing investor scrutiny, competitive pressure and the need to address local community concerns as it scales its operations.
