ByteDance Working with Samsung to Develop AI Chip: Sources

• ByteDance plans AI-related procurement exceeding 160 billion yuan ($22 billion) in 2025, with over half allocated to Nvidia chips including H200 models and in-house chip development
• Samsung negotiations include access to scarce memory chip supplies, making the deal particularly attractive amid global AI infrastructure buildout
• ByteDance executives acknowledged the company's AI models lag behind OpenAI but pledged continued investment, with the SeedChip project part of broader AI push spanning large language models and applications

ByteDance Developing AI Chip with Samsung Amid Supply Chain Push

Key Developments:

ByteDance, TikTok's parent company, is developing an in-house AI chip and negotiating with Samsung Electronics for manufacturing, according to sources. The company aims to receive sample chips by end-March and plans to produce at least 100,000 units this year for AI inference tasks, potentially scaling to 350,000 units. ByteDance denied the information was accurate but did not elaborate.

Financial Implications:

ByteDance plans to spend over 160 billion yuan ($22 billion) on AI-related procurement in 2026, with more than half allocated to purchasing Nvidia chips, including H200 models. The Samsung negotiations notably include access to critically scarce memory chip supplies amid the global AI infrastructure boom.

Strategic Context:

The initiative, codenamed "SeedChip," represents ByteDance's broader push into AI development spanning chips to large language models. The company has pursued chip development since at least 2022 and previously worked with Broadcom and TSMC on an advanced AI processor in 2024.

ByteDance trails domestic competitors Alibaba and Baidu in chip development. Alibaba unveiled its Zhenwu chip last month, while Baidu already sells chips externally and plans to spin off its Kunlunxin chip unit.

Market Drivers:

U.S. export controls on advanced chip sales to China have intensified urgency among Chinese tech firms to develop proprietary AI chips. This mirrors global tech giants like Google, Amazon, and Microsoft reducing reliance on dominant supplier Nvidia. ByteDance executive Zhao Qi acknowledged the company's AI models lag behind OpenAI but pledged continued investment to benefit all business divisions.