ByteDance Develops AI Chip, Discusses Samsung Manufacturing

ByteDance, the parent company of ByteDance===TikTok, is reportedly developing its own artificial intelligence (AI) chip, codenamed SeedChip, and is in discussions with Samsung Electronics for manufacturing. The company aims to receive sample chips by the end of March and plans to produce at least 100,000 units this year, with a potential ramp-up to 350,000 units. These chips are designed for AI inference tasks. Negotiations with Samsung Electronics also include securing access to memory chip supplies, which are currently in high demand due to the global AI infrastructure build-out. This move is part of ByteDance's broader strategy to enhance its AI capabilities, reduce reliance on external suppliers like Nvidia, and navigate U.S. export controls on advanced chip sales to China. ByteDance plans to spend over 160 billion yuan ($22 billion) on AI-related procurement this year, with more than half allocated to purchasing Nvidia chips and advancing its in-house chip development. While ByteDance denies the information, its competitors Alibaba Group and Baidu have already made progress in AI chip development.