In the world of technology, a sensation is brewing as Chinese company ByteDance, the owner of the popular app TikTok, is joining forces with American chip manufacturer Broadcom to develop an advanced artificial intelligence processor. This unexpected partnership could potentially be a groundbreaking development in the realm of high technology, especially amidst the strained relations between the United States and China.
According to Reuters, the companies are collaborating on the creation of a specialized 5-nanometer ASIC chip. The production of this chip will be handled by the giant TSMC, which will help circumvent the US export restrictions on high-tech semiconductors put in place in 2022.
For ByteDance, this partnership holds immense value. It will not only ensure a steady supply of high-performance chips but also significantly reduce the cost of procurement. However, fans of TikTok may have to wait before reaping the benefits as the production of the new chip is unlikely to commence this year, despite ongoing design work.
ByteDance has a history of collaboration with Broadcom, having purchased 5-nanometer Tomahawk chips and Bailly switches for Clasters from the American company since 2022.
For ByteDance, developing its own AI chip is not just a whim but a necessity. The company is actively progressing in generative artificial intelligence but faces challenges due to limited access to AI chips. With restrictions on acquiring NVIDIA’s cutting-edge developments and fierce competition for alternative solutions like Huawei chips, having powerful AI chips is crucial for ByteDance to enhance its algorithms.
ByteDance operates several popular apps, not limited to TikTok and its Chinese counterpart Douyin. The company also boasts a Dubao chatbot with an audience of 26 million users. To stay ahead in the AI technology race, ByteDance has already invested heavily, reportedly spending $2 billion on NVIDIA chips alone last year.
Furthermore, ByteDance is actively hiring semiconductor specialists, with numerous vacancies listed on the company’s website including 15 positions for ASIC chip developers. Additionally, the company is poaching top talent from other Chinese firms involved in AI chip development, emphasizing its commitment to advancing in this critical area.