TSMC has rejected OpenAI CEO Sam Altman’s ambitious proposal to invest US$7 trillion in chip manufacturing plants and AI data centers, citing concerns about its feasibility and financial risks. During discussions with major Asian chipmakers, including TSMC, Samsung, and SK Hynix, Altman’s plan to build 36 new facilities was met with skepticism. TSMC executives referred to him dismissively as a “podcasting bro” and questioned the sustainability of such a massive investment.
Dr. C. C. Wei, TSMC’s founder and CEO, expressed that Altman’s goals seemed “too aggressive” and difficult to support during a recent shareholders meeting. Altman’s proposal aimed to bolster OpenAI’s chip fabrication capabilities, allowing the company to compete with industry leaders like Nvidia and TSMC. However, TSMC’s leadership remained doubtful about the financial viability of Altman’s vision, especially given the substantial costs involved.
This rejection may be compounded by recent turmoil at OpenAI, with several key executives resigning, potentially shaking investor confidence. Although the company’s shift from a nonprofit to a for-profit model could attract more investment, ongoing losses, and high executive turnover present significant challenges for the organization.
Taiwan Semiconductor Manufacturing Company Limited (TSMC) – a Taiwanese company- is the world’s second-most valuable semiconductor company and the world’s largest dedicated independent (“pure-play”) semiconductor foundry.
