ByteDance is in discussions with Samsung Electronics regarding the production of an artificial intelligence chip, according to Reuters citing sources with direct knowledge. The initiative reflects pursuit by the TikTok owner to maintain reliable access to advanced processors amid surging demand in the AI sector.
Reuters’ sources indicate that ByteDance aims to take delivery of chip samples by March’s end and is targeting production of a minimum of 100,000 units in the current year, with eventual output potentially increasing to as many as 350,000 chips. These components are designed primarily for AI inference activities.
As part of the ongoing negotiations, Samsung may provide ByteDance with memory chips, which have become increasingly scarce due to robust global expansion in AI infrastructure. Secure access to these memory supplies could add particular value to the potential collaboration, one source noted.
ByteDance, whose efforts to establish in-house semiconductor capabilities trace back to at least 2022 with significant hiring in the chip development field, has publicly stated that reports concerning its internal chip projects are inaccurate, though the company did not offer further comment. Samsung has not commented officially on the matter.
ByteDance is projected to allocate more than CNY 160 billion this year for AI-related procurement, which includes planned purchases of processing units from NVIDIA, according to the sources.
If successful, the project could represent a significant step for ByteDance in building AI infrastructure and ensuring self-sufficiency in processor sourcing.
