TikTok owner ByteDance has reportedly formed a partnership with Broadcom to develop an AI chip, likely in response to tensions created by US trade sanctions. The Chinese company plans to mass-produce the chip using TSMC’s 5nm technology, despite restrictions on Chinese companies working with the Taiwanese semiconductor manufacturer. This move allows ByteDance to comply with US export restrictions by producing an application-specific embedded chip (ASIC). By partnering with Broadcom, ByteDance can reduce chip costs and ensure a stable supply. However, production is not expected to start this year, as design work is still underway.
This strategic partnership with Broadcom allows ByteDance to secure advanced AI chips necessary to develop more robust algorithms for its apps like TikTok and Douyin. The company also operates a chatbot service called Doubao, similar to ChatGPT, which would benefit from the development of a new AI chip. ByteDance has stockpiled NVIDIA chips in the past, including A100, H100, A800, and H800, in addition to purchasing Huawei’s Ascend 910B chips last year.
To support its AI initiatives, ByteDance has opened several job positions for ASIC chip designers and plans to recruit talent from other Chinese AI chip companies. It remains to be seen how the Biden administration will respond to this news, but as ASIC development is permitted under trade rules, adjustments may be made in the future. The partnership with Broadcom allows ByteDance to navigate trade restrictions and continue its AI advancements for various applications.
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