ByteDance, the Chinese tech giant behind TikTok and AI chatbot Doubao, is in talks to purchase at least 50,000 AI chips from Shanghai-based Iluvatar CoreX, according to Reuters. The chips in question are designed for inference — the process of running an AI model to generate responses — rather than for training models from scratch.
According to Reuters, ByteDance is also weighing a separate deal to acquire chips from Kunlunxin, an AI chip unit spun out of Baidu, China's dominant search company. Together, the moves signal a deliberate pivot toward domestically produced silicon.
Iluvatar CoreX, listed on the Hong Kong stock exchange, has until now operated largely outside the spotlight. A deal with ByteDance — one of China's biggest technology companies and a top spender on AI infrastructure — would represent a significant commercial milestone for the chipmaker, according to Firstpost.
Finimize reports the chips are earmarked specifically to power Doubao, ByteDance's fast-growing AI assistant that competes with products like ChatGPT.
The backdrop is well-documented U.S. export restrictions that have sharply limited China's access to advanced Nvidia chips. ByteDance's reported talks with domestic suppliers show how China's largest AI companies are adapting — building out supply chains that don't depend on American hardware. If the deal closes, it would be one of the largest orders yet for a Chinese-made AI inference chip, a sign that homegrown alternatives are becoming commercially viable at scale.