Chinese technology company ByteDance is in discussions to acquire artificial intelligence (AI) chips from Shanghai-based Iluvatar CoreX, according to a Reuters report citing two sources familiar with the matter. The report also indicated that ByteDance, the parent company of TikTok and Douyin, is considering a similar agreement with Baidu’s AI chip unit as it seeks domestic suppliers in response to U.S. export controls.
The negotiations are centered on procuring processors for inference tasks, which involve running trained AI models to generate content, power recommendation algorithms, and manage other operational workloads.
These discussions are taking place within the context of expanded U.S. regulations designed to limit China’s access to advanced semiconductor technology. In October 2023, the U.S. Commerce Department updated export rules that restricted the sale of high-performance AI chips to Chinese companies, including models like Nvidia’s A800 and H800 processors, which had been designed specifically for the Chinese market to comply with earlier regulations.
ByteDance is reportedly among several major Chinese technology firms exploring domestic alternatives to secure a stable supply of the advanced chips necessary for developing and operating large-scale AI systems. In addition to the talks with Iluvatar CoreX and considerations regarding Baidu’s Kunlunxin chips, sources cited by Reuters stated ByteDance has also been testing processors from Huawei Technologies, another prominent Chinese technology company.
Iluvatar CoreX is a Chinese semiconductor startup that develops graphics processing units (GPUs) and other AI-focused hardware. Baidu, a major player in China’s technology sector, develops its own line of Kunlunxin AI accelerators.
According to the report, ByteDance, Iluvatar CoreX, and Baidu did not respond to requests for comment on the matter. The development reflects a broader trend among Chinese technology companies that are increasingly turning to domestic chip designers and manufacturers to navigate the challenges posed by international trade restrictions.
