Tech & AI
OpenAI finance chief says data-center spending continues despite voter backlash
OpenAI's finance chief said Friday the company will go on funding AI computing capacity after midterm voters opposed new data centers. That could matter for the chip and cloud firms inside tech funds.
Quick Read
- OpenAI finance chief Sarah Friar told CNBC on Friday that the company will keep investing in AI computing capacity.
- She tied the plan to customer demand and said it holds despite midterm voters opposing new data centers.
- Tech shares gained on Friday but still finished a losing week, with the Nasdaq-100 down sharply.
- Whether local opposition slows real projects is still unsettled and may play out site by site.
What did OpenAI's finance chief say?
Sarah Friar, OpenAI's chief financial officer, said on Friday that the company plans to keep investing in AI infrastructure. She made the remarks in an interview with CNBC's Sara Eisen, held during Citi's TMT Leadership Summit.
Why it matters: Her stated reason was demand. Friar told CNBC that customers keep asking for more, so OpenAI wants more computing power. Data centers are the large buildings full of servers and chips that run AI models.
She addressed the midterm elections directly. Voters in those contests pushed back on new data-center developments, and Friar said OpenAI would still invest to meet demand.
How did tech stocks trade around the comments?
Tech shares gained on Friday, the last day of a hard week. The technology sector fund (XLK) rose 1.5%, and the Nasdaq-100 rose 1.4%. Even so, the Nasdaq-100 fell 4.9% for the week after a 6.4% drop on Thursday.
Meta Platforms (Nasdaq: META) rose 0.8% on Friday but fell 0.8% over the week. The stock ended 21.5% below its 52-week high.
Meta accounts for 1.6% of the value of the 500 largest U.S. companies. Its Friday gain added $13 to $100,000 invested across them in proportion to their size.
What could change the spending plans?
The open question is whether local resistance slows actual construction. Friar described OpenAI's intent; towns and states still decide whether individual sites go ahead.
The midterm results show that opposition exists. How much it affects real projects may become clear only as each site seeks approval.
The next scheduled test for markets is the October consumer price index, the monthly government report on inflation, due Nov. 10 at 8:30 a.m. ET. It shapes expectations for the Fed's next interest-rate decision, which can move every stock fund.
For readers
What it could mean for you: If you own a technology or semiconductor fund, OpenAI's spending reaches you through the chipmakers and cloud companies that sell it computing power. Those firms make up much of such funds. A sector fund concentrates on one industry, so any cut in AI data-center budgets could hit it harder than a broad index fund. Friar's pledge may support those orders for now. Local fights over new sites might slow how fast the money gets spent.
Questions and answers
Is OpenAI cutting back on data centers?
No. Finance chief Sarah Friar told CNBC on Friday that OpenAI will keep investing in computing capacity to meet customer demand, even after midterm voters opposed new data-center projects.
Why does OpenAI's spending matter for tech funds?
OpenAI buys computing power from chipmakers and cloud companies, and those firms make up much of many tech funds. Continued spending may keep supporting their orders.
How did Meta stock do this week?
Meta Platforms shares gained on Friday but fell for the week as a whole. They closed well below their 52-week high.
The numbers
| Meta Platforms (META) price | $610.15 |
|---|---|
| Meta Platforms (META) change | +0.84% |
| Meta Platforms (META) market value | $1.4 trillion |
| Meta Platforms (META) 52-week high | $777.59 |
| S&P 500 change | +0.31% |
| 10-year Treasury yield | 4.86% |
Week ended Friday
Companies in this story
Share this story
Not investment advice.
