OpenAI CEO Sam Altman, while popular with Silicon Valley venture capitalists, has faced resistance from Taiwan Semiconductor Manufacturing Company (TSMC). A recent New York Times report revealed TSMC executives dismissed Altman and his ambitious $7 trillion proposal to construct 36 chip manufacturing plants and AI data centers.
This rejection follows Altman’s unsuccessful tour of Asian chip manufacturers last winter, where he sought investment from Samsung, SK Hynix, and TSMC for OpenAI’s artificial general intelligence pursuits. The Times reported that TSMC’s leadership ridiculed Altman’s $7 trillion request.
Although Altman hasn’t publicly confirmed his chipmaking ambitions, the plan suggests a potential direct competition with Nvidia and TSMC through in-house chip design and fabrication. The investment would reportedly be spread over several years as production capacity is developed. However, TSMC executives expressed concerns about mitigating the financial risks involved.
TSMC’s skepticism towards OpenAI isn’t new. During the 2024 Annual Shareholders Meeting, TSMC founder and CEO Dr. C. C. Wei described Altman’s approach as “too aggressive.”
OpenAI CEO Sam Altman standing on stage at a product event.
Despite this setback, OpenAI has attracted significant investment. The company received $13 billion from Microsoft in 2023 and is reportedly nearing a $6.5 billion funding round. There are also rumors of OpenAI transitioning from a nonprofit to a for-profit structure to attract more investors.
However, the Wall Street Journal reports that despite a $4 billion annual income, OpenAI is losing approximately $7 billion annually. Recent executive departures, including CTO Mira Murati, CRO Bob McGrew, and senior research executive Barret Zoph, further complicate the situation and may raise investor concerns.
In conclusion, while OpenAI enjoys substantial financial backing and ambitious goals, the company faces significant challenges, including skepticism from key industry players like TSMC and substantial financial losses. The recent executive departures add further uncertainty to OpenAI’s future.
