ByteDance partners with Broadcom and TSMC to develop AI chips, challenging Nvidia's dominance

ByteDance, the parent company of TikTok, is partnering with Broadcom and TSMC to develop its own AI chips. This move aims to reduce reliance on Nvidia, which has faced supply issues due to U.S. trade restrictions affecting Chinese companies. ByteDance has invested over $2 billion in Nvidia's H20 GPUs in 2024 but is now focusing on creating two new AI chips for training and inference. These chips will utilize TSMC’s advanced manufacturing processes, similar to those used for Nvidia’s GPUs. Broadcom, known for its AI chip designs, will lead this development, with mass production expected by 2026. However, ByteDance will need to create its own software platform to support its new hardware, which presents additional challenges.