OpenAI CEO Sam Altman has reportedly faced skepticism from TSMC executives after pitching a massive $7 trillion plan to build 36 semiconductor plants over several years. During his whirlwind tour of Asia last winter, Altman presented his vision to TSMC, Samsung, and SK Hynix executives, suggesting that this large-scale investment would power the AI industry’s future growth. However, the scale of Altman’s proposal led TSMC execs to allegedly label him a “podcasting bro,” expressing disbelief over what they considered overly ambitious ideas.
The New York Times, which spoke to sources familiar with the discussions, reported that Altman’s proposal could require an investment comparable to a quarter of the U.S. annual economic output. OpenAI has since scaled back the estimated cost to “mere” hundreds of billions, but questions remain about how such a vision could be implemented, given the years of construction and financing required.
TSMC Chairman Dr. C.C. Wei openly criticized Altman’s approach, calling him “too aggressive” during TSMC’s 2024 Annual Shareholders’ Meeting. Further, Altman’s talks in South Korea with Samsung and SK Hynix executives were reportedly cut short due to concerns over national security, especially given the involvement of countries like the UAE, which maintains relationships with China.
As AI’s potential for growth continues to draw both interest and skepticism, Altman’s grand vision of AI being as ubiquitous as electricity faces significant hurdles. While OpenAI’s current business model struggles with a $7 billion expenditure against $3 billion in revenue, investors like MGX, Microsoft, Nvidia, and Apple remain in talks, despite the absence of a definitive “killer app” for AI adoption.
