China’s ByteDance is reportedly developing its own AI chip, in talks with Samsung to manufacture it, aiming to reduce reliance on Nvidia processors.
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| ByteDance aims to produce tens of thousands of AI chips in 2026, signaling a push toward self-reliance amid global chip shortages and U.S. export restrictions. Image: CH |
Beijing, China – February 11, 2026:
ByteDance, the Chinese tech giant best known for TikTok, is reportedly developing its own artificial intelligence chip and in discussions with Samsung Electronics to manufacture it, marking a potential milestone in its bid to secure advanced processing power.
According to sources familiar with the matter, ByteDance plans to receive sample chips by the end of March, with an initial production target of at least 100,000 units this year. Production could later scale up to 350,000 units. The chip, codenamed “SeedChip,” is designed primarily for AI inference tasks, which are critical for powering large language models and other AI applications across ByteDance’s platforms.
Negotiations with Samsung reportedly also include access to memory chips, a highly sought-after resource amid global shortages driven by the rapid expansion of AI infrastructure. While ByteDance has not publicly confirmed these plans, the initiative aligns with years of strategic hiring and investment in chip development.
ByteDance began aggressively recruiting for chip-related roles in 2022 and previously partnered with U.S.-based Broadcom to design an advanced AI processor, with production slated for Taiwan Semiconductor Manufacturing Company (TSMC). The company’s push reflects a broader trend among global tech giants, including Google, Amazon, and Microsoft, to develop proprietary AI chips and reduce reliance on Nvidia, the dominant supplier of high-end AI processors.
For Chinese firms, the urgency is heightened by U.S. export restrictions on advanced chips, motivating domestic innovation. While ByteDance has yet to release a commercial chip, local competitors Alibaba and Baidu are further along. Alibaba recently unveiled the Zhenwu chip for large-scale AI workloads, while Baidu’s Kunlunxin processors are sold externally and the unit is preparing for a public listing.
ByteDance’s SeedChip project is part of a larger AI strategy encompassing hardware, large language models, and applications in short video, e-commerce, and enterprise cloud services. Its AI research division, Seed, launched in 2023, focuses on developing foundation models and related technologies. The company plans to invest more than 160 billion yuan ($22 billion) in AI-related procurement in 2026, with over half allocated to Nvidia chips, including H200 models, and to advancing in-house chip development.
At a January all-hands meeting, ByteDance executive Zhao Qi emphasized that AI investments would benefit all company divisions. Zhao acknowledged that ByteDance’s AI models still lag global leaders such as OpenAI but promised sustained investment to accelerate the company’s AI capabilities, including its chatbot Doubao and its international version, Dola.
If successful, ByteDance’s proprietary chip could reduce dependence on foreign suppliers, strengthen its AI infrastructure, and position the company as a more competitive player in the global AI ecosystem. The initiative underscores the growing importance of custom silicon in the race to dominate artificial intelligence.