Key facts
- ByteDance is in talks with Iluvatar CoreX for AI chips.
- ByteDance is considering Baidu's Kunlunxin chips.
- The potential deals highlight China's drive for domestic chip alternatives.
- U.S. export controls are a factor in China's chip strategy.
- A Trip.com executive sees huge AI application opportunities in China.
- The focus is on practical AI implementation within China's digital ecosystem.
- Foreign foundational models are advanced, but China has application opportunities.
ByteDance, the parent company of TikTok, is reportedly in negotiations with Iluvatar CoreX, a Chinese artificial intelligence chip manufacturer, to acquire chips essential for AI inference. Sources familiar with the matter indicate that ByteDance is also evaluating chips produced by Baidu's Kunlunxin. These potential procurement agreements are seen as a significant development in China's ongoing pursuit of self-sufficiency in advanced semiconductor technology. The drive for domestic chip alternatives is largely a response to U.S. export controls that restrict access to cutting-edge AI hardware.
The discussions with Iluvatar CoreX and consideration of Kunlunxin chips signal ByteDance's strategic move to bolster its AI capabilities by leveraging China's domestic supply chain. This development aligns with a broader national objective to reduce reliance on foreign technology and foster innovation within China's borders. The focus on chips for inference tasks suggests ByteDance's intent to deploy AI models more broadly and efficiently within its services.