OpenAI CEO Sam Altman might have the ear of every venture capitalist in Silicon Valley, but executives from Taiwan Semiconductor Manufacturing Company (TSMC) are far from impressed. According to a New York Times report, TSMC leadership dismissed Altman as a “podcasting bro” and scoffed at his proposed $7 trillion plan to build 36 new chip manufacturing plants and AI data centers.
This reaction follows Altman’s recent Asian tour last winter, where he met with Samsung, SK Hynix, and TSMC in search of investment for OpenAI’s artificial general intelligence (AGI) goals. TSMC’s senior leadership reportedly derided Altman after his $7 trillion request, questioning the financial feasibility of such a massive undertaking. While Altman hasn’t officially confirmed his pursuit of chipmaking capabilities, his vision would ultimately enable OpenAI to compete directly with both Nvidia and TSMC by creating its own in-house designed and fabricated chipsets.
The proposed investment, spanning several years, would be used to gradually build out the fabrication capacity. However, TSMC executives raised concerns about mitigating the financial risks associated with such a large-scale plan. This isn’t the first time TSMC has expressed skepticism towards OpenAI. During its 2024 Annual Shareholders Meeting, TSMC founder and CEO Dr. C. C. Wei described Altman as “too aggressive, too aggressive for me to believe.”
Despite the skepticism, OpenAI doesn’t seem to be short of potential investors. The company received a $13 billion investment from Microsoft in 2023 and is reportedly nearing the completion of another $6.5 billion funding round. Additionally, OpenAI is rumored to be transitioning from its nonprofit structure to a for-profit one, potentially making it more attractive to investors.
However, even with these investments, OpenAI is facing financial challenges. According to a Wall Street Journal report, despite the company’s stated $4 billion annual income, it’s losing nearly double that amount ($7 billion) each year. This financial strain, coupled with the recent departure of key executives (CTO Mira Murati, CRO Bob McGrew, and senior research executive Barret Zoph), may further raise concerns among investors.
