ByteDance pursues AI chip manufacturing deal with Samsung amid $22 billion AI investment push

China's ByteDance In Talks With Samsung To Manufacture AI Chips, Secure Scarce Memory Chip Supplies: Report - Broadcom (NASDAQ:AVGO), Alibaba Gr Hldgs (NYSE:BABA)

ByteDance, the parent company of TikTok, is reportedly developing an artificial intelligence (AI) chip and is in discussions with Samsung Electronics (OTC:SSNLF) for its manufacturing. The Chinese tech company plans to receive sample chips by the end of March, Reuters reported on Wednesday, citing sources familiar with the matter. It also aims to manufacture at least 100,000 units of the AI inference chip this year. ByteDance plans to scale production to as many as 350,000 units gradually and is negotiating with Samsung not only on manufacturing but also on securing memory chip supplies, which are in tight demand amid the global AI infrastructure expansion, according to the report. The development represents a key milestone for ByteDance in its multi-year effort to build in-house chips for AI workloads, an initiative that began with hiring chip-related talent in 2022. Benzinga reached out to ByteDance and Samsung for comments, but did not receive an immediate response. ByteDance Targets AI Scale-UpChinese Tech Accelerates AI Chip Push Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

ByteDance in talks with Samsung to make AI processor, Reuters reports By Investing.com

Investing.com-- TikTok parent company ByteDance is developing its own artificial intelligence chip and is in discussions with Samsung Electronics (KS:005930) to manufacture it, Reuters reported on Wednesday, citing people familiar with the matter. The Chinese technology giant aims to receive sample chips by the end of March and plans to produce at least 100,000 units this year, designed primarily for AI inference tasks, the Reuters report said. Get real-time updates on market moving news with InvestngPro Production could eventually ramp up to as many as 350,000 units. Talks with Samsung also include potential access to memory chips, which remain in short supply as companies worldwide expand AI infrastructure, the report stated. ByteDance said the information about an in-house chip project was inaccurate, without elaborating, while Samsung declined to comment, Reuters reported. The reported effort, code-named SeedChip, underscores ByteDance's broader push into AI, including large language models and related infrastructure. Reuters previously reported the company was working with Broadcom Inc (NASDAQ:AVGO) on an advanced AI processor. ByteDance plans to spend more than 160 billion yuan ($22 billion) on AI procurement this year, including purchases of NVIDIA Corporation (NASDAQ:NVDA) chips, the report added.

ByteDance developing AI chip, in manufacturing talks with Samsung, sources say

BEIJING/SINGAPORE, Feb 11 (Reuters) - China's ByteDance is developing an artificial intelligence chip and is in talks with Samsung Electronics to manufacture it, two people familiar with the matter said, as the TikTok parent seeks to secure supply of advanced processors. ByteDance aims to receive sample chips by end-March, they said. The company plans to produce at least 100,000 units of the chip, designed for AI inference tasks, this year, according to one of the sources and another person. One of the sources said Bytedance is looking to progressively ramp production to up to 350,000 units. Negotiations with Samsung include access to memory chip supplies that are in exceptionally short supply amid the global AI infrastructure build-out, making the deal particularly attractive, one of the sources said. The information about ByteDance's in-house chip project is inaccurate, a spokesperson for the company said in a statement, without elaborating. Samsung declined to comment. The work would mark a milestone for ByteDance, which has long sought to develop chips to support its AI workloads. The company's chip efforts date back to at least 2022, when it began hiring chip-related staff in earnest. Reuters reported in June 2024 that ByteDance was working with U.S. chip designer Broadcom on an advanced AI processor, with manufacturing planned to be outsourced to Taiwan's TSMC. Global tech giants including Alphabet's Google, Amazon and Microsoft have developed their own AI chips to reduce reliance on Nvidia, the dominant supplier of advanced chips essential for AI development. For Chinese tech companies, U.S. export controls on advanced chip sales to China have also added urgency to develop their own AI chips. While Bytedance has yet to launch its own chip, its rivals Alibaba and Baidu are ahead in AI chip development: Alibaba last month unveiled its Zhenwu chip for large-scale AI workloads. Baidu sells chips to external clients and plans to list its chip unit Kunlunxin soon. The chip project, codenamed SeedChip, is part of ByteDance's broader push to channel resources into AI development, from chips to large language models, betting the technology will transform its business portfolio spanning short video, e-commerce and enterprise cloud services. The company founded Seed in 2023 to develop AI models and promotes their applications. 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, including H200 models, and advancing its in-house chip, one of the sources said. ByteDance executive Zhao Qi told employees at a January all-hands meeting that the company's AI investment would benefit all divisions, according to a fourth source briefed on the meeting. Zhao, who oversees ByteDance's Doubao chatbot and its overseas version Dola, acknowledged the company's AI models lagged behind global leaders like OpenAI but pledged continued support for AI development this year, the person said. (Reporting by Liam Mo, Fanny Potkin, Che Pan, ; Additional reporting by Hyunjoo Jin; Editing by Miyoung Kim and Stephen Coates)