TSMC plans $1B investment in OpenAI and Anthropic

Taiwanese chipmaker TSMC has received board approval to invest up to $500 million in OpenAI preferred stock and another $500 million to purchase Anthropic common shares. The move comes as TSMC profits heavily from the artificial intelligence boom, which has driven massive demand for the hardware it manufactures. While the investments give the top chip manufacturer direct stakes in leading AI developers, analysts point out that this type of circular financing among customers, suppliers, and investors makes real market demand harder to evaluate. However, TSMC continues to report record profits amid ongoing demand for AI-related chips.