TikTok's parent company ByteDance is in active negotiations to purchase artificial intelligence chips from Chinese manufacturer Iluvatar CoreX, according to multiple sources cited by BusinessLine and Moneycontrol. The talks come as U.S. export controls continue to restrict Chinese companies' access to Nvidia's high-end AI processors.
According to Moneycontrol, ByteDance is also exploring a chip deal with Baidu, signaling a broader push by the Beijing-based tech giant to secure domestic alternatives to American silicon. The moves reflect a wider industry shift, as Chinese firms scramble to replace Nvidia hardware under tightening trade restrictions.
Iluvatar CoreX is one of a small group of Chinese companies attempting to fill the void left by Nvidia's diminishing presence in the Chinese market. While Chinese-made chips are generally considered less powerful than Nvidia's top-tier offerings, demand for any available AI-capable hardware is surging as companies race to build and run large AI models.
ByteDance operates some of the world's most heavily trafficked AI-powered platforms, including TikTok and Douyin, making it one of the largest consumers of AI computing infrastructure globally. Any significant shift in its chip supply chain would send a strong signal about the state of U.S.-China tech decoupling.
If the deal closes, it would mark one of the most prominent endorsements yet of a homegrown Chinese AI chip — and a concrete sign that U.S. export controls are successfully redirecting, rather than simply blocking, China's AI hardware ambitions.