ByteDance in Talks To Purchase AI Chips From Iluvatar CoreX and Baidu as China Accelerates Domestic Semiconductor Adoption
ByteDance is in talks to purchase AI inference chips from Iluvatar CoreX and Baidu to reduce reliance on foreign hardware. This move, aiming to secure at least 50,000 chips for its Doubao chatbot, signals a shift toward domestic GPU suppliers. Iluvatar CoreX shares surged following the news, reflecting strong growth projections for Chinese AI infrastructure providers.
ByteDance is currently in negotiations to purchase artificial intelligence chips from Shanghai-based startup Iluvatar CoreX, according to reports. The potential agreement, which could also involve Baidu’s Kunlunxin chips, highlights an ongoing effort by China’s largest technology firms to secure domestic alternatives for AI inference workloads amid stringent U.S. export controls on advanced semiconductors.
If the deal is finalised, Iluvatar CoreX would become the third major domestic GPU supplier for the TikTok parent company, joining existing partners Huawei and Cambricon. Sources indicate that ByteDance is looking to procure at least 50,000 chips from the startup this year, primarily to support the expansion of its signature AI chatbot, Doubao. Anthropic Sends Senior Staff to Washington to Resolve White House Dispute Over Export Restrictions on Mythos 5 and Fable 5 AI Models.
China Strategic Shift Toward Domestic AI Hardware
The move reflects a broader trend within the Chinese technology sector as companies pivot toward locally developed hardware to ensure self-reliance. While global leader Nvidia previously held a dominant position in the Chinese market, recent reports suggest its influence has diminished significantly due to export restrictions, allowing domestic manufacturers to capture a substantial share of the AI accelerator server market.
Market analysts observe that Chinese AI chipmakers accounted for approximately 41% of the domestic market last year. Industry executives, including Tencent's Chief Strategy Officer James Mitchell, have indicated that large-scale availability of domestically produced AI chips is expected to increase significantly during the latter half of 2026.
Commercial milestone for Iluvatar CoreX
A partnership with ByteDance would represent a major commercial milestone for Iluvatar CoreX, which listed in Hong Kong this January. Historically focused on government procurement contracts, the startup reported 1 billion CNY (approximately 148 million USD) in revenue for 2025. Projections from Huatai Securities suggest that the company’s revenue could reach 3.04 billion CNY (449.8 million USD) this year, driven by a 139% increase in chip shipments. US Government Orders Anthropic To Suspend Access to Claude Fable 5, Mythos 5 Over Export Control Directive.
The Zhikai series, which ByteDance is evaluating for its inference tasks, is specifically engineered for handling real-time query responses. As ByteDance continues to invest heavily in its AI infrastructure, the shift toward these domestic units signals a long-term commitment to reducing dependence on foreign supply chains while maintaining the high computational capacity required for its rapidly evolving AI ecosystem.
(The above story first appeared on LatestLY on Jun 15, 2026 11:36 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).