TSMC Approves Up to $1 Billion Investment in OpenAI and Anthropic

TSM said its board approved investments of up to $1 billion in OpenAI and Anthropic, allowing it to buy up to $500 million of shares in each. Per reports on the board resolutions from Quartz and the South China Morning Post, the Anthropic stake would be common stock bought at its IPO price, and the OpenAI stake would be preferred stock. The board also authorized up to $500 million to set up a company that will invest in semiconductor businesses and the wider industry.

The Wall Street Journal framed the move as TSMC broadening its AI exposure beyond manufacturing advanced chips. It also creates an awkward overlap with a major customer: TSMC makes Apple's custom chips, while OpenAI and Anthropic are developing processors of their own and compete with AAPL for TSMC's most advanced manufacturing capacity.

Investors read the news positively, with TSMC's U.S.-listed shares up 4.8% in premarket trading, according to TipRanks. The Anthropic purchase lands days before that company's Nasdaq debut, where it is marketing shares at $70 to $78 with trading expected to begin around Nov. 19, CNBC reported. What to watch: the final Anthropic IPO price, which sets TSMC's entry cost, and whether other chip suppliers follow with equity stakes in their AI customers.