ByteDance Explores AI Chip Production Partnership with Samsung Electronics

ByteDance, the parent company of TikTok, is making significant strides in artificial intelligence chip development. The firm is reportedly collaborating with Samsung Electronics to outsource production. This partnership aims to create specialized semiconductors designed for AI inference tasks.

Production Goals and Timeline

ByteDance has set a goal to secure sample AI chips by the end of March this year. The company plans to produce a minimum of 100,000 units in 2024, with potential expansion to 350,000 units as demand increases.

Strategic Importance of AI Chip Development

• The global investment in AI infrastructure has led to a tight supply of memory semiconductors.
• Negotiations between ByteDance and Samsung also involve the supply of memory chips.
• These talks are seen as strategically significant for both companies.

ByteDance has not confirmed the specifics of its in-house chip project, described internally as “SeedChip,” but has been actively hiring semiconductor experts since 2022. This initiative is part of a broader push to enhance its AI capabilities.

Investment in AI Technologies

For 2024, ByteDance plans to allocate approximately 160 billion yuan for investments related to AI procurement. A large portion of this budget will support the purchase of high-performance chips, including Nvidia’s H200 GPU, as well as further development of its own chips.

Growing Competition in AI Chip Development

As demand for AI computing grows, many tech giants are taking steps to develop their own chips to decrease reliance on Nvidia. Competing Chinese companies are also stepping up. For instance, Alibaba recently introduced its AI chip, “Zhenyu 810E,” while Baidu has announced plans for the M100 and M300, with the M100 set to launch this year.

This competitive landscape underscores the increasing importance of in-house semiconductor capabilities in the technology sector. ByteDance’s ongoing efforts to develop AI chip technology indicate a commitment to innovation and market adaptation.