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ByteDance And Samsung Partner To Create AI Chips

ByteDance is reportedly developing an in-house AI chip, collaborating with Samsung Electronics for its production. According to sources, ByteDance aims to receive sample chips by the end of March. The initiative is intended to secure a supply of advanced…

LBy Lucas GallagherFeb 12, 20261 min read

ByteDance is reportedly developing an in-house AI chip, collaborating with Samsung Electronics for its production. According to sources, ByteDance aims to receive sample chips by the end of March. The initiative is intended to secure a supply of advanced processors, with a goal of producing at least 100,000 units within the year, potentially increasing to 350,000 units.

Discussions with Samsung also include access to memory chips, which are in limited supply due to AI infrastructure demands. High bandwidth memory (HBM3 and HBM4) is particularly sought after for AI servers, with Micron, Samsung, and SK Hynix being the primary manufacturers.

ByteDance has denied the reports, stating that information regarding their in-house chip project is inaccurate. Samsung has not commented on the matter.

The chip initiative, named SeedChip, is part of ByteDance’s broader AI investment strategy. The company plans to allocate more than 160 billion yuan (approximately $22 billion) towards AI-related procurement this year. A significant portion of this budget is earmarked for purchasing Nvidia chips and advancing its own processor technology.

ByteDance is reportedly developing an in-house AI chip, collaborating with Samsung Electronics for its production.
Lucas Gallagher · Thehackingpost

ByteDance has been involved in chip development since 2022, including collaborations with US chip designer Broadcom. Recent discussions with Samsung suggest a potential shift in manufacturing partnerships, with plans to scale production to 356,000 units.

ByteDance established a division named Seed in 2023 to enhance AI model development. These models are integrated across various business segments, including short video, ecommerce, and enterprise cloud services. The SeedChip project aims to unify hardware and software development efforts.

Competitive Landscape and Regulatory Environment

Chinese technology firms face increasing US export restrictions on advanced chip sales, prompting companies like ByteDance to design their own AI processors. Alibaba and Baidu are among other Chinese companies developing AI chips, while global companies such as Google, Amazon, and Microsoft are also creating in-house AI chips to reduce dependency on Nvidia.

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ByteDance’s efforts align with industry trends towards greater control over supply chains and cost management.

Based on reporting by techround.co.uk.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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