Chinese tech giant ByteDance is reportedly developing an artificial intelligence chip and is in discussions with Samsung Electronics to manufacture it, according to a Reuters exclusive report citing sources familiar with the matter.
The move by the parent company of TikTok is aimed at securing supply for advanced processors needed for AI workloads. The sources said ByteDance aims to receive sample chips by the end of March and plans to produce at least 100,000 units of the chip this year, ramping up to potentially 350,000 units.
One source told Reuters that talks with Samsung include securing access to scarce memory chips, which are in high demand globally. A spokesperson for ByteDance called the information about the in-house chip project inaccurate without providing details. Samsung declined to comment to Reuters.
The reported effort comes as US export controls limit Chinese firms’ access to advanced chips from suppliers like Nvidia, prompting several tech giants to develop their own, explains the Reuters report. Rivals Alibaba and Baidu are already further ahead in similar AI chip development, according to the report.
One source reportedly stated that ByteDance plans to spend over 160 billion yuan ($22 billion) on AI-related procurement this year, with more than half allocated to buying Nvidia chips and advancing its own chip project, internally codenamed SeedChip.
