PiCK

Summary

  • OpenAI said it will continue AI infrastructure investment despite growing opposition to data centers and concerns over regulation.
  • OpenAI said it has secured $11 billion in new investment and is seeking an additional $9 billion in funding.
  • South Korea's financial industry said continued AI investment by OpenAI is a condition for a rebound in semiconductor stocks, including Samsung Electronics and SK Hynix.

Forecast Trend Report by Period

Sticking With Investment Despite Opposition to 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 US midterm elections. The announcement is drawing attention to whether it could help Samsung Electronics Co. and SK Hynix Inc. rebound after their shares fell on concerns about tighter regulation of data centers.

Sarah Friar, OpenAI's chief financial officer, told CNBC on Nov. 6 that the company must keep finding ways to sustain investment to meet customer demand. She added that OpenAI will continue raising funds through partnerships it has built with major cloud companies.

The remarks came just after election results underscored opposition to data-center construction. According to tallies by CNBC and election data provider Ballotpedia, 40 of 41 data-center-related ballot measures held across 10 US states on Nov. 3 supported tighter regulation or opposed proposals to speed development. Concerns over higher electricity bills, environmental damage and reduced job creation fueled the backlash.

Friar said the election results had not fundamentally changed OpenAI's business. She added that if scrutiny of data centers and their impact on local communities continues to grow, the company will keep entering those regions and working to build trust.

A day earlier, OpenAI also announced measures aimed at coexisting with local communities. The company said it will bear the full cost of power and related infrastructure for data centers it directly owns and operates. It also plans to put financial guarantees in place so that, even if projects are delayed or canceled, the burden will not be passed on to other electricity users. OpenAI said it will disclose power and water usage, as well as employment data, for each site.

OpenAI is also gathering funds needed for expansion. CNBC reported that the company secured $11 billion in new investment and plans to raise as much as another $9 billion in the coming weeks. People familiar with the matter said the funding round valued OpenAI at $1.25 trillion.

Attention is now turning to whether OpenAI's commitment to continue investing in data centers can spur a rebound in Samsung Electronics and SK Hynix. The two companies are pursuing partnerships to supply memory chips for Stargate, OpenAI's AI infrastructure project.

Samsung Electronics signed a letter of intent with OpenAI last year to join as a strategic memory partner. SK Hynix also signed a letter of intent 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 semiconductor stocks. Park Tae-hyung, a private banking branch manager at Woori Bank's TCE Signature Center, said South Korean chipmakers could have substantial room to rebound if the market gains confidence that AI spending will continue.

Doohyun Hwang