The collaboration between TikTok's parent company and the semiconductor firms is unusual given the U.S.'s efforts to limit Chinese chipmaking ambitions. The move is intended to ensure a steady chip supply for ByteDance, which operates the world's largest short video platform and other Chinese services. ByteDance's global competitors, including Meta Platforms, Microsoft, and Google, are all developing or using their own custom chips for AI tasks.
Key takeaways:
- ByteDance Ltd. and Broadcom Inc. are discussing a potential collaboration on a 5-nanometer AI processor to enhance ByteDance's development of AI technology.
- No deal has yet been reached between the two companies, and Broadcom currently supplies a 7nm AI processor for ByteDance’s data centers.
- If a deal is reached, the customized chip would be manufactured by Taiwan Semiconductor Manufacturing Co. and would comply with U.S. trade restrictions on China.
- ByteDance's global competitors, including Meta Platforms Inc., Microsoft Corp., and Alphabet Inc.'s Google, are all developing or using their own bespoke chips for AI tasks, making AI a priority for ByteDance this year.