TSMC commits up to $1 billion to Anthropic and OpenAI

Key Points

1. TSMC's board approved up to $1 billion in investments split between Anthropic and OpenAI.
2. Anthropic priced its IPO at $70 to $78 per share, targeting a $1.4 trillion valuation.
3. The chipmaker is moving from supplying AI infrastructure to owning stakes in its biggest customers.

The latest:

Taiwan’s TSMC will invest as much as $1 billion across two of the largest AI developers, Reuters reported, with its board approving up to $500 million for Anthropic shares at the IPO price and up to $500 million for preferred stock in OpenAI. The decision lands as investor anxiety grows over the pace of AI spending.

Details:

• The structure: The board signed off on two separate approvals on Tuesday, according to Reuters: up to $500 million to buy Anthropic shares at the initial public offering price, and up to $500 million for preferred stock in OpenAI. TSMC did not set out a timeline for completing either purchase.
• The IPO: Anthropic priced its initial public offering at $70 to $78 per share on Tuesday, Reuters reported, seeking a valuation of up to $1.4 trillion. At that level it would rank among the largest stock market debuts on record.
• The private raise: Separately, Anthropic is raising $26 billion through a private placement, Reuters reported. The backers named include Alphabet’s Google, Nvidia, AMD and Microsoft — a group that pairs the company’s largest cloud and chip suppliers with investors in its equity.
• The strategic shift: TSMC is positioning itself to profit not only from manufacturing AI infrastructure but from holding equity in the developers that buy it, according to Reuters. That gives the foundry exposure to the model layer of the industry rather than only the hardware beneath it.
• Why TSMC matters: The company is the world’s largest contract chipmaker and a critical supplier to leading AI firms, including Nvidia, whose graphics processors underpin many current AI models. That makes TSMC a chokepoint in the supply chain feeding both companies it is now investing in.
• The earnings backdrop: Last month TSMC reported a sixth consecutive quarter of record profit, Reuters said, and described demand for AI-related chips as “extremely robust.” The company nonetheless adopted a cautious outlook for 2027.
• The spending debate: The investment runs against a rising current of concern over how much capital is being poured into artificial intelligence. TSMC’s willingness to add equity exposure on top of its manufacturing commitments signals confidence in long-term demand, according to Reuters.
• What is undisclosed: TSMC did not specify what stake either investment would translate into, nor the terms attached to the OpenAI preferred stock. The announcement also left unstated whether the commitments are conditional on Anthropic’s listing completing at the indicated price range.

Background:

TSMC manufactures the advanced chips that power most leading AI systems, supplying Nvidia and other designers whose processors train and run large models. Its results have become a closely watched proxy for the health of AI demand globally.

Between the lines:

The two approvals point in the same direction but carry different risk. The Anthropic tranche buys into a public listing at a stated price range; the OpenAI tranche buys preferred stock in a private company with no disclosed valuation. Both deepen TSMC’s exposure to customers it already supplies — a concentration that pays twice if AI demand holds, and compounds losses if it slows, which TSMC’s cautious 2027 outlook acknowledges as possible.

What’s next

Watch whether Anthropic’s IPO prices within the $70 to $78 range and where it opens on debut, whether the $26 billion private placement closes with the named backers, and TSMC’s next quarterly results for 2027 guidance.