TikTok's parent company is negotiating to buy at least 50,000 AI inference GPUs from the Shanghai-based chipmaker as US export controls reshape the semiconductor supply chain
ByteDance is negotiating to purchase a minimum of 50,000 AI inference GPUs from Shanghai-based Iluvatar CoreX, a move that underscores just how aggressively Chinese tech giants are building their own chip ecosystems outside of Nvidia’s reach.
What ByteDance is actually doing #
Beyond the Iluvatar CoreX negotiations, ByteDance is also exploring similar contracts with Baidu’s Kunlunxin AI chips. The strategy is straightforward: diversify supply lines across multiple domestic vendors rather than depend on a single source that could be cut off by geopolitical whim.
Iluvatar CoreX, founded in 2015, specializes in developing general-purpose GPUs built on 7nm-class process technology. The company’s flagship TianGai-100 series is designed to compete directly with Nvidia’s A100 and A800 chips in AI training and inference workloads.
ByteDance has also been developing its own custom AI silicon and was reportedly in talks with Samsung as recently as February 2026 about potential manufacturing partnerships. That’s three parallel tracks: buy from Iluvatar, buy from Baidu’s chip unit, and build your own.
The export control backdrop #
US restrictions on advanced chip exports to China have been tightening for years, with Nvidia’s most powerful processors repeatedly caught in the crossfire. The Chinese government has been actively advocating for self-reliance in the semiconductor sector, funneling resources into domestic chip development and encouraging the country’s largest tech firms to localize their supply chains.
The deal remains in early stages, with terms and timelines not yet confirmed.
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