ByteDance, the parent company of TikTok, is reportedly working with U.S. chip designer Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) to develop an advanced 5-nanometer application-specific integrated chip (ASIC) for artificial intelligence (AI) applications.
The customized AI chip aims to enhance ByteDance's AI capabilities across apps like TikTok and Douyin, focusing on speed, and energy efficiency. It also aims to reduce dependence on Nvidia's GPUs amidst supply shortages and export controls, and cutting procurement costs.
The collaboration is expected to comply with U.S. export restrictions and help ByteDance establish Broadcom in the AI technology market while securing a stable supply of higher-end chips.
However, some U.S. regulators have expressed concerns about ByteDance's national security threat as a China-based company.
The customized AI chip is expected to provide ByteDance with a competitive advantage in terms of speed, energy efficiency, and cost savings.
The development of the AI chip is part of ByteDance's broader strategy to strengthen its AI capabilities and position itself as a leader in the AI technology market.
Sources: PCMag, Reuters, Times of India, Benzinga, Basic Tutorials, Cryptorank, Cryptopolitan, DatacenterDynamics, Conservative Angle, Dexerto, ZeroHedge, Fortune, Techzine, MarketScreener.
This article was written in collaboration with Generative AI news company Alchemiq.
