Reports say that the company behind TikTok is making a big move into hardware. Recent reports say that ByteDance is making its own artificial intelligence chip and is in talks with Samsung Electronics to handle the production. This move, codenamed “SeedChip,” reportedly seeks to secure the firm’s digital future amid a tightening global market for processors.
ByteDance reportedly taps Samsung to manufacture its first AI chip
The primary goal for ByteDance, according to Reuters, is to create a chip specialized in “inference” tasks—the process where an AI model actually applies what it has learned to make predictions or decisions. An in-house AI silicon would position the company alongside global giants like Google and Amazon. They have already designed custom chips to reduce their dependence on external suppliers like Nvidia.
The alleged deal with Samsung is especially important. It would probably give ByteDance access to Samsung’s limited supply of memory chips, in addition to making the chips. In the current AI infrastructure boom, these components are notoriously difficult to obtain. Securing a steady stream of high-performance memory is just as vital as the processor itself for running complex large language models.
Navigating global restrictions
ByteDance’s push into hardware also has survival in the current tech landscape in mind. US export controls on advanced chips have made it increasingly difficult for Chinese tech firms to buy the high-end hardware they need for AI development. Local rivals like Alibaba and Baidu, have already made progress with their own chips. So, ByteDance is now trying to catch up so that its services, which range from short-form videos to e-commerce, stay competitive.
The scale of this project is significant. The report indicates that ByteDance aims to receive sample chips by late March, with a production goal of at least 100,000 units this year. Some sources suggest they could eventually ramp up production to as many as 350,000 units. This is part of a massive $22 billion AI procurement budget for 2026, which still includes substantial orders for Nvidia’s latest H200 chips while the in-house project matures.
ByteDance’s response
Interestingly, ByteDance has officially labeled the reports about its in-house chip project as “inaccurate.” They haven’t provided specific details to back up that denial, though. This kind of response is common in the tech industry when sensitive negotiations or strategic projects are still in the early stages. Samsung has also declined to comment on the talks.
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