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ByteDance Ltd. and Broadcom Inc. have discussed a potential collaboration on an AI processor to help bolster the TikTok parent\u2019s development of that technology.<\/p>\n
The U.S. chip designer and Beijing-based ByteDance have talked about a 5-nanometer purpose-built chip, according to a person familiar with the discussions. No deal has yet been reached between the two companies, and Broadcom already supplies an older-generation 7nm AI processor for use in ByteDance\u2019s data centers, the person said, asking not to be named as the information is private.<\/p>\n
The proposed chip would comply with U.S. trade restrictions on China, Reuters said in an earlier report citing anonymous sources. The two companies\u2019 existing business relationship largely revolves around server and\u00a0networking gear<\/a>, and Broadcom has cited ByteDance as a customer in its\u00a0press releases<\/a>.<\/p>\n In March, Broadcom told investors that it added a new customer for its consumer AI accelerator business and it will be shipping products to that company in the next few months, without providing a name.<\/p>\n Should the pair reach a deal, the customized chip would be made by Taiwan Semiconductor Manufacturing Co., Reuters reported. The tie-up between the owner of TikTok and two global semiconductor firms is unusual given Washington is actively trying to curtail Chinese chipmaking ambitions through a series of broad production and export curbs.<\/p>\n The arrangement is intended to ensure a steady supply of chips to ByteDance, which operates the world\u2019s biggest short video platform as well as Chinese services Douyin and Toutiao. ByteDance\u2019s Doubao became China\u2019s\u00a0most popular AI chatbot\u00a0<\/a>this year.<\/p>\n ByteDance\u2019s global competitors, from Meta Platforms Inc. and Microsoft Corp. to Alphabet Inc.\u2019s Google, are all developing or already using their own bespoke chips for AI tasks. The TikTok parent will be trying to keep pace with those U.S. rivals,\u00a0having made AI a priority<\/a>\u00a0this year.\u00a0<\/p>\n Representatives for ByteDance, Broadcom and TSMC did not respond to requests for comment.<\/p>\n<\/div>\nSubscribe to the Fortune Next to Lead newsletter to get weekly strategies on how to make it to the corner office. Sign up for free<\/a> before it launches on June 24, 2024.<\/div>\n<\/div>\n