ByteDance Denies AI Chip Push as $22B Spending Plan Sparks Industry Shock
A fresh power move in the global AI race may be unfolding behind closed doors and it involves one of the world’s most influential tech giants. Reports now suggest that ByteDance, the parent company of TikTok, is developing its own artificial intelligence chips and is in talks with Samsung Electronics to secure advanced manufacturing capacity.
According to sources familiar with the matter, the project is internally known as “SeedChip,” and early samples could arrive as soon as the end of March. The goal is ambitious. ByteDance is said to be aiming for at least 100,000 AI inference chips this year, with production potentially ramping up to 350,000 units. These chips would be designed specifically to power AI models, especially for inference tasks, which means running AI systems efficiently at scale.
But here is where the story takes an interesting turn. A ByteDance spokesperson has publicly denied reports of in-house chip development, calling them inaccurate, though without offering further details. That leaves room for speculation. Is this a strategic denial, or are plans still too early to confirm?
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What makes this development even more significant is the scale of spending involved. ByteDance is reportedly preparing to invest more than 160 billion yuan, roughly 22 billion US dollars, into AI-related procurement this year alone. More than half of that budget could go toward purchasing Nvidia chips, which currently dominate the global AI hardware market. At the same time, funds would also support independent chip development efforts.
This matters because the AI hardware race is no longer just about software innovation. It is about control. Companies want to reduce reliance on external suppliers, especially in a climate shaped by geopolitical tensions and export restrictions. Nvidia’s advanced AI chips have faced regulatory limits in certain markets, including China. So building in-house capability could be a strategic hedge.
If ByteDance truly moves forward with custom AI chips, it would join the ranks of global tech leaders like Google, Amazon and Microsoft, all of whom are investing in proprietary silicon to power their AI ecosystems. That shift could reshape the supply chain and put new pressure on established chipmakers.
For now, the company’s official denial adds uncertainty. But the scale of reported investment suggests that ByteDance is preparing for an AI-driven future in a very serious way.
Stay with us as this story develops, because in the AI era, control over chips may define who leads the next technological revolution.
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