) on developing an advanced AI processor, two sources familiar with the matter said, a move that would help TikTok's owner secure sufficient supply of high-end chips amid U.S.-Sino tensions.
ByteDance's tie-up with Broadcom, an existing business partner, would help slash procurement costs and ensure a stable supply of higher-end chips, said the sources, who declined to be identified due to the sensitivity of semiconductor issues in China. Securing AI chips is crucial for ByteDance to make its algorithms more powerful. In addition to TikTok and the Chinese version of the short-video app called Douyin, ByteDance operates a range of popular apps including a ChatGPT-like chatbot service called Doubao, which has 26 million users.
ByteDance also purchased Huawei's Ascend 910B chips last year, two separate sources with knowledge of the matter said.