Chinese tech company ByteDance is said to be working on an artificial intelligence chip and is reportedly in talks with Samsung Electronics for its production, as per a Reuters report citing insider sources. The move by the owner of TikTok is intended to ensure a stable supply of high-performance processors required for AI tasks. The sources mentioned that ByteDance is targeting to have sample chips ready by the end of March and plans to manufacture around 100,000 units of the chip this year, with a potential increase to 350,000 units.
According to one source, discussions with Samsung also involve securing access to scarce memory chips, which are in high demand worldwide. A ByteDance spokesperson disputed the accuracy of the information regarding the internal chip project without providing further specifics. Samsung declined to comment on the matter when approached by Reuters.
This development comes in the wake of restrictions on Chinese companies imposed by US export controls, limiting their ability to acquire advanced chips from suppliers like Nvidia. This has led many tech companies to explore developing their own chips. The report highlights that competitors Alibaba and Baidu are already making progress in similar AI chip projects.
A source mentioned that ByteDance is planning to invest more than 160 billion yuan ($22 billion) in AI-related procurements this year. Over half of this budget is expected to be spent on purchasing Nvidia chips and advancing its in-house chip initiative, internally known as SeedChip.
