# TSMC Terms Imply $1.25 Trillion OpenAI Valuation at $992 a Share

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/54759
Published: 2026-11-12T01:31:06.000Z
Updated: 2026-11-12T01:31:06.000Z
Section: Business

> TSMC’s board approved up to $500 million through its wholly owned TSMC Partners subsidiary for no more than 0.04% of OpenAI Group PBC.

Taiwan Semiconductor Manufacturing Co. (TSMC) approved an investment of up to $500 million in OpenAI preferred shares, terms that imply a $1.25 trillion post-restructuring valuation and roughly $992 per share.

The board approved the investment Nov. 10, with funds to be invested through TSMC Partners, Ltd., TSMC’s wholly owned offshore subsidiary. The terms cap the stake at 0.04% of OpenAI Group PBC. Dividing the maximum investment by that maximum ownership percentage yields the implied equity value. At an estimated 1.26 billion shares outstanding, the figures work out to about $992 per share.

The investment is in convertible preferred shares, not common stock. The terms include a liquidation preference, giving the preferred shares priority in a liquidation, and conversion rights that provide a route to common shares if OpenAI pursues an initial public offering.

The valuation applies to OpenAI Group PBC after its restructuring. The $992 figure is an implied calculation from the investment terms, not a publicly traded share price.