ByteDance negotiates AI chip deals with Iluvatar and Baidu

ByteDance, the parent company of TikTok, is in negotiations to acquire a large quantity of AI chips from domestic Chinese suppliers Iluvatar CoreX and Baidu, according to multiple reports on Monday, June 15, 2026. The talks highlight a strategic push by Chinese technology firms to secure domestic semiconductor sources amid prolonged U.S. export restrictions.

The potential deals would involve ByteDance purchasing at least 50,000 AI inference GPUs from Shanghai-based Iluvatar CoreX this year, primarily to support the expanding user base of its Doubao AI chatbot. The company is also considering a separate agreement to acquire AI chips from Baidu's Kunlunxin unit. If finalized, Iluvatar CoreX would become ByteDance's third major domestic GPU supplier, alongside Huawei and Cambricon.

The reported negotiations fit a broader pattern of Chinese tech giants diversifying their supply chains away from foreign dependencies. Inference chips, used for running AI models in live applications rather than training them, are seen as strategically important for deploying and monetizing AI capabilities. By sourcing from multiple domestic vendors, companies aim to mitigate the risk of supply disruptions.