ByteDance Ltd. and Broadcom Inc. are in discussions about potentially collaborating on an artificial intelligence processor to advance the development of technology at TikTok’s parent company. The companies have talked about a specially designed 5-nanometer chip, but no agreement has been reached yet. Broadcom currently provides an older-generation 7nm AI processor for use in ByteDance’s data centers.
The proposed chip would adhere to US trade restrictions on China and would be manufactured by Taiwan Semiconductor Manufacturing Co. The collaboration between ByteDance and the two global semiconductor companies is seen as unusual, especially considering US efforts to limit Chinese chipmaking through various restrictions.
The purpose of the potential deal is to ensure a reliable supply of chips for ByteDance, which runs the world’s largest short-video platform along with Chinese services Douyin and Toutiao. ByteDance has also had success with its AI chatbot Doubao, which became popular in China this year.
Competitors like Meta Platforms Inc., Microsoft Corp., and Google are all developing or using their own custom chips for AI tasks. ByteDance wants to keep pace with these American rivals by making AI a priority this year.
Representatives for ByteDance, Broadcom, and TSMC have not provided comments on the potential collaboration. The companies involved have a history of working together on servers and network equipment, with Broadcom already being a supplier to ByteDance. In March, Broadcom mentioned adding a new customer for its consumer AI accelerator business, hinting at future shipments to this unnamed company.
If an agreement is reached, ByteDance would benefit from a custom chip designed specifically for its AI needs, potentially gaining an edge over competitors in the rapidly evolving technology landscape. This collaboration marks an interesting development in the ongoing race for AI dominance among tech companies worldwide.
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