ByteDance seeks China AI chips

ByteDance, the parent company of TikTok, is reportedly in advanced discussions with Shanghai-based Iluvatar CoreX to procure AI chips for inference tasks and is also evaluating similar deals with Baidu's Kunlunxin chip unit. If finalized, Iluvatar CoreX would become ByteDance's third major domestic GPU supplier, alongside Huawei and KFin Technologies. This strategic move by ByteDance is driven by China's broader initiative to enhance self-reliance in semiconductor technology amidst U.S. export controls on advanced chips. The deals are expected to significantly benefit Chinese chipmakers, with Iluvatar CoreX projected to ship at least 50,000 chips to ByteDance this year, primarily for its Doubao AI chatbot. This development underscores the growing traction of domestic AI chip alternatives in China, impacting the market share of international players like Nvidia.