ByteDance in talks with Iluvatar CoreX for AI chips, sources say

Key facts

• ByteDance is in talks with Iluvatar CoreX to purchase AI chips for inference tasks.
• ByteDance is also considering using Baidu's Kunlunxin chips.
• Iluvatar CoreX could become ByteDance's third domestic GPU supplier, following Huawei and Cambricon.
• Chinese AI chipmakers captured nearly 41% of China's AI accelerator server market last year.
• Iluvatar CoreX projects revenue of 3.04 billion yuan ($449.8 million) this year, with shipments expected to exceed 100,000 chips.

ByteDance, the parent company of TikTok, is reportedly in discussions with Shanghai-based Iluvatar CoreX to acquire artificial intelligence chips for its inference workloads. The Chinese technology giant is also exploring a similar deal with Baidu for its Kunlunxin chips, according to sources familiar with the matter. If an agreement is reached with Iluvatar CoreX, it would establish the company as ByteDance's third major domestic supplier of graphics processing units (GPUs), following Huawei and Cambricon. Tencent is already a known customer of Baidu's Kunlunxin chips.

These potential collaborations underscore China's push for self-reliance in advanced chip technology, particularly in the face of U.S. export controls. Chinese AI chipmakers have significantly eroded Nvidia's market share in China, capturing nearly 41% of the AI accelerator server market last year. Iluvatar CoreX, a leading GPU startup, is expected to supply at least 50,000 chips to ByteDance this year, primarily for inference tasks as ByteDance expands its AI chatbot, Doubao. The company's Zhikai series chips are designed for inference, while its Tiangai series is for AI training.

A deal with ByteDance would represent a major commercial achievement for Iluvatar CoreX, which has historically focused on government procurement projects. The company reported 1 billion yuan ($148 million) in 2025 revenue, with approximately 90% derived from GPU sales, and projects its revenue to reach 3.04 billion yuan ($449.8 million) this year, with shipments expected to increase by 139% to over 100,000 chips.