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As ByteDance spends billions on AI, which Chinese chip start-ups stand to gain?

ByteDance, the owner of TikTok, is spending billions on AI and shifting to domestic chips, potentially benefiting second-tier Chinese chipmakers like Iluvatar CoreX, Biren Technology, and others. The move comes as US sanctions limit access to Nvidia chips, pushing ByteDance to source from local suppliers for its cloud infrastructure.

read1 min views2 publishedJun 18, 2026

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TikTok owner’s expanding spending could benefit a few second-tier domestic chipmakers, with Iluvatar CoreX in pole position, analysts say

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As Chinese technology giant

ByteDanceaccelerates its shift towards domestic chips forartificial intelligenceworkloads, a few smaller domestic suppliers stand to benefit – if they can deliver at scale amid a void left byNvidiadue to regulatory hurdles.The Beijing-based owner of TikTok is considering turning to a handful of so-called tier-two chipmakers in China – smaller rivals to

Huawei TechnologiesandCambricon Technologies– for its cloud infrastructure, according to sources and analysts.Suppliers in this group, which analysts said included Biren Technology,

MetaX Integrated Circuits, Iluvatar CoreX,Moore Threads TechnologyandEnflame Technology, have been trying to win orders from one of China’s largest cloud service providers as Beijing pushes for greater use of home-grown semiconductors.Advertisement

In a recent case, ByteDance quietly bought tens of thousands of AI processors from Shanghai-based Iluvatar at a favourable price, according to two sources familiar with the matter.

The company was also in talks with a few other domestic chipmakers for potential orders, the sources said.

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ByteDance and Iluvatar did not immediately respond to requests for comment on Thursday.

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