ByteDance, Broadcom Discuss Collaboration on Advanced AI Chip Development

ByteDance and Broadcom Discuss Collaboration on AI Processor

ByteDance Ltd., the parent company of TikTok, is in discussions with US chip designer Broadcom Inc. about developing a new AI processor. These talks are focused on a 5-nanometer custom chip that would enhance ByteDance's capabilities in AI technology. According to an insider, no agreement has been finalized yet, but this proposed chip would adhere to US trade restrictions on China.

Currently, Broadcom supplies ByteDance with a 7nm AI processor for its data centers. The two companies have an ongoing relationship primarily centered around server and networking equipment, with Broadcom acknowledging ByteDance as a client in its communications. Earlier this year, Broadcom hinted to investors about gaining a new customer in its consumer AI accelerator business, anticipating product shipments in the near future, without naming the client.

Should the collaboration proceed, the manufacturing responsibilities for the custom chip would fall to Taiwan Semiconductor Manufacturing Co. (TSMC). This partnership arises amid US efforts to limit China’s chipmaking capabilities via sweeping production and export restrictions. However, it aims to secure a reliable chip supply for ByteDance, a company managing the globe's largest short video platform, along with Chinese services Douyin and Toutiao. Recently, ByteDance’s Doubao emerged as China's leading AI chatbot.

The move comes as ByteDance seeks to stay competitive with global tech giants like Meta, Microsoft, and Google's Alphabet, all of which are developing or utilizing bespoke chips for AI. AI has been identified as a significant focus for ByteDance this year as it aims to keep pace with its US counterparts.

Requests for comments from ByteDance, Broadcom, and TSMC were not answered.