Key Points

• OpenAI Chief Financial Officer confirmed that despite the sell-off in the AI market, the company will continue to invest.
• Amid concerns about infrastructure spending, the market value of the NASDAQ 100 index evaporated by $2.5 trillion.
• OpenAI reported a 70% quarter-on-quarter business growth and raised new funds.

OpenAI Chief Financial Officer Sarah Friar stated on November 6th that despite the stock market sell-off resulting in a $2.5 trillion loss of market value and increasing opposition to data center construction from external parties, OpenAI will continue to expand its artificial intelligence infrastructure.

Friar defended the company's investment strategy during an interview with CNBC, stating that customer demand and rapid business growth supported this decision. She mentioned that OpenAI's business grew by 70% quarter-on-quarter in the third quarter, and its corporate business scale doubled.

Previously, on November 5th, the market experienced a significant decline, with the Nasdaq 100 index losing approximately $2.5 trillion in market value. Investors are questioning whether stricter restrictions on data center development will weaken infrastructure spending in AI.

OpenAI defends spending after selling $2.5 trillion in assets

The Nasdaq Composite Index fell 5.5% on Thursday, and the Nasdaq 100 Index tumbled 6.4%, recording its worst single-day performance since April 2025.

Nvidia fell by about 9%, AMD fell by 17%, and cloud service providers including CoreWeave and Nebius also suffered significant losses. This round of selling reflects market concerns regarding financing costs, infrastructure demand, and potential restrictive measures following the mid-term elections in the United States.

Despite market turmoil, Friar stated that the election results did not fundamentally change the plans of OpenAI.

As stocks related to AI infrastructure face increasing pressure, the stance of OpenAI stands in sharp contrast. Investors are demanding more substantial evidence that massive capital expenditures will ultimately lead to sustainable profits.

At the same time, other service providers are also re-evaluating the economic viability of their infrastructure. Microsoft's recent decisions regarding its AI cloud business highlight that the market's demand for computing capacity is becoming more discerning.

OpenAI commits to bearing energy costs and terminates the non-disclosure agreement

This market sell-off occurred after an election in which candidates advocating for stricter regulation of data center projects gained support in several states.

In response, OpenAI released a new infrastructure policy on November 5th, committing to increasing transparency in facilities that will be owned and operated by the company in the future, as well as to enhancing interaction with the community.

The company commits to bearing its own costs for electricity and infrastructure, to make public information such as water consumption and construction impacts, and to cease signing most confidentiality agreements with public officials.

These measures are aimed at addressing concerns from the outside world that the continuously expanding AI facilities may lead to higher household electricity costs, strain local resources, or pass on the costs of infrastructure to surrounding communities.

OpenAI also mentioned its project in Georgia. According to the arrangement with Georgia Power, during periods of high stress on the power grid, the related project can reduce electricity demand by up to 1,000 megawatts.

OpenAI secures $11 billion in funding, and in 2027, IPO will still be the focus of attention

While continuing to expand its infrastructure, OpenAI is also continuously raising funds to provide financial support for its expansion.

It is reported that on November 6th, the company secured its first round of financing in the amount of $11 billion, with a valuation of $1.25 trillion, which was lower than its initial target. This investment is part of a larger financing initiative and does not signify that the entire financing round outlined in the plan has been completed.

Friar also indicates that OpenAI is still considering conducting its initial public offering in 2027, despite the fact that the $1.5 trillion IPO that competitor Anthropic plans to undertake still faces valuation uncertainties.

The financing environment remains challenging. As concerns about the debt issues of AI rise in the market, companies that rely on external borrowing to expand their computing power infrastructure are under more stringent scrutiny.