ByteDance is in talks with Chinese chipmaker Iluvatar CoreX to buy AI chips for inference tasks, according to Reuters. Sources familiar with the matter said the TikTok parent company could purchase at least 50,000 chips this year if an agreement is reached.
The chips would mainly be used to support Doubao, ByteDance’s AI chatbot, as the company works to serve a growing number of users. Inference chips are used when AI models respond to questions and generate answers, making them important for day-to-day chatbot operations.
If the deal moves forward, Iluvatar CoreX would become ByteDance’s third major domestic AI chip supplier after Huawei and Cambricon.
🚨 BREAKING: ByteDance in talks to buy 50,000 AI chips from China’s Iluvatar CoreX 🔥 Valuation went $1.6B → $13B in 1 year 📈 The anti-Nvidia is REAL. Utility = Value. #PiNetwork knows this too 🥧 @PiCoreTeam @tiktok_us @Ahmedroid #AIChips #ByteDance pic.twitter.com/v5UXO9LjP2
— Yagya Bdr Bista (@bistayage) June 15, 2026
How are AI systems decisions changing?
Large AI companies are no longer choosing one chip supplier and sticking with it. Instead, they now test different chips and keep switching based on need.
Different AI tasks are split across different chips. Some are chosen for speed, others for lower cost, and some for handling heavy workloads like real-time chatbot responses.
This reduces risk for companies because they are not dependent on one supplier. It also forces chip makers to compete based on how well their chips actually perform in real AI systems, not just on supply deals.
What does this mean for China’s AI chip industry?
The talks show how Chinese technology companies are increasingly turning to local chip suppliers as U.S. export restrictions continue to limit access to advanced foreign hardware.
Iluvatar CoreX has largely focused on government-related projects in the past, but a deal with ByteDance would mark one of its biggest commercial wins so far. The company reported revenue of about 1 billion yuan in 2025, with most of it coming from GPU sales.
Chinese chipmakers have also been gaining market share at home. A previous report said that domestic AI chip companies accounted for about 41% of China’s AI accelerator server market last year. Analysts expect demand for locally developed AI hardware to continue rising as companies look for alternatives to overseas suppliers.
Meanwhile, OpenAI is reportedly in talks to secure one of the largest artificial intelligence computing hubs ever planned, with a proposed b data centre campus in southern Ohio that could reshape the future of digital infrastructure.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
