TSMC's board approved plans to invest up to $1 billion across two leading AI companies. The chipmaker will invest $500 million in OpenAI preferred stock for large investors and another $500 million to purchase Anthropic common shares at the latter's expected IPO price, according to Reuters.
The investment ties TSMC directly to AI developers even as the company profits from manufacturing chips for their data center operations. TSMC produces the vast majority of Nvidia's AI data center chips and most of Apple's custom chips. Meanwhile, Anthropic and OpenAI purchase large quantities of AI hardware from TSMC for their own data center projects.
Analysts flagged the deal as an example of circular financing in the AI sector. The Wall Street Journal reported the investment may give markets confidence as the AI trade shows signs of strain, but also noted that such circular arrangements among investors, suppliers, and customers make it difficult to assess real demand for AI-related hardware and services.
TSMC reported six consecutive quarters of record profit, earning more than $23 billion during the July through September 2026 quarter, according to Reuters. The company's AI-related chip demand has fueled this performance.
The investment is smaller than comparable deals by Nvidia, which has invested $30 billion in OpenAI and $10 billion in Anthropic to date, plus tens of billions in other AI and robotics companies.