ByteDance Ltd. and Broadcom Inc. are reportedly in discussions about a potential collaboration on an advanced AI processor aimed at enhancing ByteDance’s technological capabilities. The proposed 5-nanometer Bytedance AI chip is expected to significantly support the company’s AI development efforts. Currently, Broadcom supplies ByteDance’s data centers with an older 7nm AI processor.
The new Bytedance AI chip would be designed to comply with US trade restrictions on China. If the collaboration is finalized, Taiwan Semiconductor Manufacturing Co. (TSMC) would produce the chip. This initiative underscores ByteDance’s commitment to securing a steady supply of advanced chips, crucial for the operations of its platforms like TikTok, Douyin, and Toutiao.
In March, Broadcom hinted at the addition of a new customer for its consumer AI accelerator business but did not disclose the company’s identity. This potential deal with ByteDance would extend their existing business relationship, which currently focuses on server and networking equipment. Broadcom has previously identified ByteDance as a significant customer.
ByteDance is making substantial strides to keep up with global competitors like Meta Platforms Inc., Microsoft Corp., and Alphabet Inc.’s Google, all of which are developing or using their own customized AI chips. This year, ByteDance has prioritized AI development, highlighted by the success of its Doubao chatbot, which has become China’s most popular AI chatbot.
The Bytedance AI Lab is at the forefront of these advancements, working on innovative technologies to maintain ByteDance’s competitive edge. Additionally, the integration of Bytedance Broadcom AI processors into their systems would bolster the company’s infrastructure to support both its global and domestic platforms.
Despite the US government’s efforts to limit Chinese chipmaking capabilities through production and export restrictions, ByteDance is determined to advance its technological infrastructure. Representatives for ByteDance, Broadcom, and TSMC have not commented on the discussions. This potential collaboration underscores the strategic importance of AI in ByteDance’s future endeavors, including the continued growth and innovation of TikTok AI.
