OpenAI CFO Confirms $1.25T Raise Talks, Says Data Center Spending Continues Despite Voter Backlash

OpenAI Chief Financial Officer Sarah Friar confirmed that the company is in fundraising discussions at a $1.25 trillion pre-money valuation, about 47% above its March round, and said OpenAI will keep investing in AI data centers despite growing voter resistance. Friar spoke to CNBC's Sara Eisen on Nov. 6 at the Citi TMT Leadership Summit in Pebble Beach, California.

What Friar said

The valuation in context

• March round. OpenAI raised $122 billion in March at an $852 billion post-money valuation. A $1.25 trillion pre-money valuation is about 47% higher.
• Round details. CNBC reported on Oct. 22 that OpenAI was nearing a round of up to $30 billion led by UAE investors and Coatue, after earlier pitching a $1.4 trillion pre-money price.
• IPO. OpenAI confidentially submitted a listing application to the SEC in June and is considering going public in 2027, according to ChainCatcher.
• Rival. Anthropic's own IPO valuation talks have fallen to $1.2 trillion to $1.3 trillion. See our Anthropic IPO report.

Voter resistance and OpenAI's response

Local ballot measures backed restrictions on data centers or rejected pro-development measures in 40 of 41 cases across 10 states, according to Ballotpedia and CNBC's tally. Voter concerns include environmental harm, utility bills and job losses. On Nov. 5, OpenAI published a National Community Compact and a policy blueprint for its company-owned and operated "compute campuses."

• Electricity. OpenAI says it will pay for the electricity it uses and the infrastructure needed to serve its sites, and will provide financial assurances so other customers are protected if a project is delayed, reduced or canceled.
• Water and noise. Each campus will have a water plan that prioritizes closed-loop or low-water cooling and will disclose site-level water and electricity use. Independent noise studies will be done before operations begin and annually afterward.
• Transparency. OpenAI will not require public officials to sign nondisclosure agreements, apart from narrow confidentiality for security and trade secrets.
• Scope. The compact applies to future campuses OpenAI owns and operates, and Decrypt noted it describes no penalties for noncompliance. Partners such as Oracle build and own much of the infrastructure reserved for OpenAI.

Local economic impact

OpenAI has said its campuses will bring local jobs, and the compact calls for workforce plans and annual hiring and training reports. In Effingham County, Georgia, a $4.8 million grant will provide free school meals for all 14,000 county students, part of an $80 million community commitment. In Pike County, Ohio, OpenAI and SB Energy made a joint $6 million childcare commitment. Friar also highlighted small-business AI initiatives and argued that ChatGPT is expanding workers' capabilities.

What to watch

• Funding round. Whether OpenAI closes its round at $1.25 trillion pre-money and how much it raises.
• Ballot measures and policy. Whether state and local officials adopt the large-load tariffs and other requirements OpenAI's blueprint proposes, or impose moratoriums.
• Enforcement. Whether the compact's commitments are independently verified at each campus.
• Compute supply. Whether OpenAI's enterprise growth keeps pace with new capacity.
• Related coverage. See our reports on CoreWeave's bond yield, Oracle's New Mexico data center and OpenAI's ChatGPT business tool.

Sources: Friar's remarks are from her Nov. 6 CNBC interview as reported by Jingletree, HuggingNews and ChainCatcher. Community compact details are from Unite.AI and Decrypt, and the March round and Oct. 22 funding report are from InvestingLive and AI Weekly. The percentage above March is calculated from reported valuations. This article is informational only and is not investment advice.