Taiwan Semiconductor Manufacturing Company (NYSE:TSM), commonly known as TSMC, has received board approval to invest up to a combined $1 billion in artificial intelligence companies Anthropic (NASDAQ:ANT) and OpenAI (NASDAQ:OAI), expanding its financial exposure to two developers of advanced AI models.
Shares of the Taiwanese semiconductor manufacturer rose more than 4% on Wednesday, following separate figures showing that the company’s October sales increased 60% compared with the same month a year earlier.
The investment approvals cover potential purchases of shares in both AI companies, with different arrangements established for each transaction.
TSMC Allocates Up to $500 Million for Anthropic IPO
TSMC’s board authorised an investment of up to $500 million to acquire shares in Anthropic at the company’s initial public offering price.
The approval follows Anthropic’s announcement on Tuesday of an indicative IPO price range between $70 and $78 per share.
The developer of the Claude artificial intelligence platform is targeting a valuation of up to $1.4 trillion, according to the reported offering details.
At that valuation, Anthropic’s planned stock market listing would rank among the largest initial public offerings on record.
TSMC’s proposed participation would give the semiconductor manufacturer a direct equity interest in Anthropic, subject to the final terms and completion of the offering.
The board approval establishes the maximum authorised investment amount but does not confirm that the full allocation has been deployed.
Board Approves Separate $500 Million OpenAI Investment
TSMC also authorised an investment of up to $500 million in OpenAI through the purchase of preferred shares.
The proposed transaction differs from the Anthropic investment, which is linked to the company’s initial public offering.
Preferred shares generally carry contractual rights that differ from those associated with ordinary shares, although the specific terms of TSMC’s proposed investment were not disclosed in the supplied announcement.
The combined approvals establish a maximum investment commitment of $1 billion across the two artificial intelligence developers.
The announcement did not specify a completion date for either investment or provide additional details about the expected ownership stakes.
TSMC Shares Advance Following October Revenue Growth
TSMC shares gained more than 4% on Wednesday as investors assessed the investment announcement alongside the company’s latest monthly sales figures.
Separate data showed that October revenue increased 60% year over year.
The sales increase provided additional information about the semiconductor manufacturer’s recent operating performance, although the source did not disclose the absolute revenue figure or provide a breakdown by business segment.
TSMC is the world’s largest contract semiconductor manufacturer and produces chips for a range of technology companies.
Its customers include Nvidia, whose graphics processing units are widely used to train and operate artificial intelligence models.
The company’s manufacturing operations therefore form part of the supply chain supporting the expansion of AI computing infrastructure.
Investments Extend TSMC’s Exposure to AI Developers
The proposed investments would add direct financial interests in Anthropic and OpenAI to TSMC’s existing commercial exposure to the artificial intelligence industry.
As a semiconductor foundry, TSMC manufactures processors and other chips designed by technology companies, including components used in AI computing systems.
Anthropic and OpenAI operate in a different part of the industry, focusing on the development and commercialisation of artificial intelligence models and related software services.
The board’s decisions would allow TSMC to participate financially in both companies, subject to the completion of the proposed transactions.
The investment approvals come as demand for AI-related computing capacity remains an important consideration for semiconductor manufacturers and their customers.
TSMC has not disclosed further details about the expected financial returns or strategic conditions associated with the investments.