Summary
- OpenAI said it will continue AI infrastructure investment and keep raising funds despite concerns over tighter data center regulation.
- OpenAI said it has secured $11 billion in fresh funding, plans to raise as much as another $9 billion, and was valued at $1.25 trillion.
- South Korea's financial industry said that if OpenAI's AI investment continues, chip stocks including Samsung Electronics and SK Hynix could rebound.
Forecast Trend Report by Period
Sticking with investment despite backlash against data centers
Secures $11 billion and seeks additional funding
Can it ease concerns over slowing memory demand in South Korea
OpenAI said it will continue investing in artificial intelligence infrastructure despite voter backlash against data centers in the U.S. midterm elections. The stance is drawing attention for whether it could help fuel a rebound in Samsung Electronics Co. and SK Hynix Inc., whose shares slumped on concerns about tighter data center regulation.
Sarah Friar, OpenAI's chief financial officer, told CNBC on Nov. 6 that the company must find ways to keep investing to meet customer demand. OpenAI will continue raising funds through partnerships it has built with major cloud companies, she added.
The comments came just after election results underscored opposition to data center construction. CNBC and election information provider Ballotpedia said 40 of 41 ballot measures related to data centers held across 10 U.S. states on Nov. 3 backed tighter regulation or rejected proposals to accelerate development. Concerns over higher electricity bills, environmental damage and fewer jobs helped drive the backlash.
Friar said the election outcome had not fundamentally changed OpenAI's business. She added that if scrutiny of data centers and their impact on local communities grows, the company will keep working locally to build trust.
A day earlier, OpenAI also announced measures aimed at coexisting with local communities. The company said it would fully bear electricity and related infrastructure costs for data centers it directly owns and operates. It also plans to put financial guarantees in place so the burden will not be shifted to other power users even if projects are delayed or canceled. OpenAI said it would also disclose site-by-site data on electricity and water use, along with employment figures.
OpenAI is also raising money for a broader investment push. CNBC reported that the company has secured $11 billion in fresh funding. It plans to raise as much as another $9 billion in the coming weeks. People familiar with the matter said the latest funding round valued OpenAI at $1.25 trillion.
Investors are now watching whether OpenAI's commitment to continued data center spending will help drive a rebound in Samsung Electronics and SK Hynix. The two companies are pursuing partnerships to supply memory for Stargate, OpenAI's AI infrastructure project.
Samsung signed a letter of intent with OpenAI last year to join as a strategic memory partner. SK Hynix also signed an LOI to supply high-bandwidth memory, or HBM, for Stargate.
In South Korea's financial industry, continued AI investment is viewed as a key condition for a recovery in chip stocks. Park Tae-hyung, head of the TCE Signature Center PB branch at Woori Bank, said Korean semiconductor shares have ample room to rebound if the market gains confidence that AI spending will continue.
