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ByteDance in advanced talks to buy custom AI chips from MediaTek

TikTok owner ByteDance is nearing an agreement to acquire custom AI data center chips from MediaTek, seeking alternative silicon amid US restrictions on Nvidia hardware.

Exterior view of a building featuring the ByteDance logo on its facade.
Image: @qz

TikTok parent ByteDance is in advanced talks to purchase custom artificial intelligence data center chips from Taiwan's MediaTek, according to Bloomberg. The prospective agreement involves custom application-specific integrated circuits (ASICs) designed for deployment in ByteDance's data centers.[1][3][5]

If finalized, the transaction would establish ByteDance as MediaTek's second major customer for custom ASIC processors, following Google. Securing ByteDance's business would also provide vital data center semiconductor components while helping the Taiwanese chipmaker compete against rival Qualcomm.[1][3][5]

ByteDance's turn toward custom hardware comes as US trade restrictions block the company from acquiring Nvidia's top-tier computing chips. Sourcing alternative AI chips from MediaTek reflects broader supply chain diversification across global technology firms navigating geopolitical tensions.[2][4]

Key facts

  • ByteDance is in advanced discussions to purchase custom AI data center ASICs from MediaTek.
  • The contract would make ByteDance MediaTek's second major ASIC customer after Google.
  • ByteDance is pursuing custom AI chips after being blocked from buying top-tier Nvidia processors under US restrictions.
  • The deal is positioned to help MediaTek compete directly with Qualcomm in data center semiconductors.
  • The potential deal illustrates a broader shift in tech supply chains aiming to diversify AI chip sourcing amid geopolitical tensions.

Sources · 5 sources

  1. AG

    AGTP@AGTPinsightsPost on X ·

    BREAKING: ByteDance is in advanced talks to buy custom AI data center chips (ASICs) from MediaTek. It would be MediaTek's second major ASIC customer after Google. https://t.co/1cfiN6gWXM

    Open source
  2. QU

    Quartz@qzPost on X ·

    ByteDance Eyes Custom AI Chips to Bypass US Restrictions Blocked from buying Nvidia's top-tier chips, TikTok parent ByteDance is now in advanced talks to source custom AI chips from Taiwan's MediaTek. The deal would make By https://t.co/ODjOXRv5CH #ByteDance #MediaTek #AIChips https://t.co/FMtuZgjp31

    Open source
  3. BL

    Bloomberg@businessPost on X ·

    ByteDance is close to an agreement to buy MediaTek data center semiconductors, a deal that would secure vital components for TikTok’s owner while helping the Taiwanese chipmaker compete with Qualcomm https://t.co/sCGatLDgHJ

    Open source
  4. CB

    Crypto BriefingArticle ·

    ByteDance reportedly in talks to buy MediaTek AI chips for data centers ByteDance's diversification in AI chip sourcing highlights the strategic shift in global tech supply chains amid geopolitical tensions. The post ByteDance reportedly in talks to buy MediaTek AI chips for data centers appeared first on Crypto Briefing .

    Open source
  5. TE

    Techmeme@TechmemePost on X ·

    Sources: ByteDance is in advanced talks to buy data center ASICs from MediaTek, potentially becoming its second major customer for such chips after Google (Bloomberg) (Visit Techmeme dot com for the link and full context!)

    Open source