# As ByteDance spends billions on AI, which Chinese chip start-ups stand to gain? > Source: > Published: 2026-06-18 08:11:42+00:00 Advertisement # As ByteDance spends billions on AI, which Chinese chip start-ups stand to gain? TikTok owner’s expanding spending could benefit a few second-tier domestic chipmakers, with Iluvatar CoreX in pole position, analysts say 3-MIN READ3-MIN Listen As Chinese technology giant [ByteDance](https://www.scmp.com/topics/bytedance?module=inline&pgtype=article)accelerates its shift towards domestic chips for[artificial intelligence](https://www.scmp.com/topics/artificial-intelligence?module=inline&pgtype=article)workloads, a few smaller domestic suppliers stand to benefit – if they can deliver at scale amid a void left by[Nvidia](https://www.scmp.com/topics/nvidia?module=inline&pgtype=article)due 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 Technologies](https://www.scmp.com/topics/huawei?module=inline&pgtype=article)and[Cambricon Technologies](https://www.scmp.com/topics/cambricon-technologies-corporation?module=inline&pgtype=article)– for its cloud infrastructure, according to sources and analysts.Suppliers in this group, which analysts said included Biren Technology, [MetaX Integrated Circuits](https://www.scmp.com/topics/metax-integrated-circuits-shanghai-company?module=inline&pgtype=article), Iluvatar CoreX,[Moore Threads Technology](https://www.scmp.com/topics/moore-threads-technology?module=inline&pgtype=article)and[Enflame Technology](https://www.scmp.com/tech/article/3343336/will-chinese-ai-chip-designer-enflames-shanghai-ipo-be-another-blockbuster?module=inline&pgtype=article), 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. Advertisement ByteDance and Iluvatar did not immediately respond to requests for comment on Thursday. Advertisement Select Voice Select Speed 1.00x