<div id="readability-page-1"><p>TikTok's parent company, ByteDance, is now in discussions to sign a new deal with Iluvatar CoreX, a Chinese GPU maker, to buy artificial intelligence (AI) chips. Sources note that if the deal is clinched, Illuvatar CoreX could become ByteDance's third biggest AI chip supplier, after Huawei Technologies and Cambricon Technologies. The move comes as Chinese tech firms reduce their dependence on AI chips supplied by U.S. companies such as Nvidia (NVDA), AMD (AMD), and Intel (INTC).</p><h3>Claim 55% Off TipRanks</h3>High conviction NVDA bears now have this Tradr ETF <h2><strong>ByteDance Turns to China's Illuvatar Corex for AI Chips</strong></h2> <p>Currently, ByteDance remains one of the biggest and fastest-growing AI companies in China. Rising demand for its AI chatbot Doubao, combined with its growing need for computing power, is pushing the firm to seek more advanced chips to support operations. Sources familiar with the matter said that ByteDance was in talks with Iluvatar CoreX to buy up to 50,000 AI chips this year. They also noted that the TikTok company is weighing a similar deal with Baidu (BIDU), another Chinese tech firm. </p> <p>Sources said ByteDance intends to use Iluvatar CoreX's AI chips for inference work if the agreement goes through. Notably, Iluvatar Corex has developed two main GPU series: the Tiangai Series and the Zhuhai Series. The Tiangai is tailored mainly for compute-heavy AI model training, while the Zhikai is geared toward more inference work. </p> <p>Meanwhile, if the Baidu deal is successful, ByteDance is considering using the firm's Kulunxin chips, which are designed for both inference and AI model training. Presently, Tencent (TCEHY), ByteDance's fiercest tech rival, already uses the Kulunxin chips and is a major customer of Baidu. If ByteDance also adopts the chips, it could further increase the competition between the two largest tech firms in China. </p> <h2><strong>China's Reliance On U.S. AI Chips Continues to Plummet</strong></h2> <p>With more Chinese companies turning to homegrown AI chips, their previous dependence on GPUs from U.S. tech firms has declined sharply. Nvidia once dominated both the U.S. and Chinese AI chip markets, holding roughly 95% market share in China. However, that dominance has since collapsed, with Nvidia CEO Jensen Huang confirming that the firm's GPU market share in China has fallen to zero. </p> <p>The pivot from U.S. tech firms comes as Beijing speeds up its push for semiconductor self-sufficiency. In early November 2025, Chinese authorities ordered all state-funded data centers to stop using or buying foreign AI chips. They urged firms in the country to rely more on domestic silicon from firms such as Huawei, Cambricon, and Enflame going forward. </p> <p>Meanwhile, projects less than 30% complete were promptly ordered to remove all foreign chips that had already been installed. This restriction follows an earlier ban that mandated tech giants in China stop purchasing Nvidia's AI chips. Similarly, the U.S. has imposed stricter export laws on AI chips on Chinese companies. </p> <h2><strong>What Are the AI Stocks to Buy Now? </strong></h2> <p>ByteDance is still a private company, meaning its shares are not publicly traded. However, Investors looking for exposure to the AI sector can instead consider top-rated AI stocks. According to TipRanks-tracked Wall Street analysts, Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT), and Alphabet Class A (GOOGL) are all rated Strong Buys. Among them, NVDA offers the highest upside potential, followed by META, MSFT, and GOOGL, respectively. For more information on their performance, price targets, and ratings, visit the TipRanks Stocks Comparison Center.</p></div>

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<p>ByteDance is negotiating to purchase up to 50,000 AI chips from Chinese GPU maker Iluvatar CoreX. This deal would make Iluvatar ByteDance's third-largest AI chip supplier, following Huawei and Cambricon. The move reflects a broader trend of Chinese tech firms reducing reliance on U.S. suppliers like Nvidia due to export restrictions and Beijing's push for semiconductor self-sufficiency. ByteDance also considers similar deals with Baidu to support its growing AI computing needs.</p>

- ByteDance is negotiating a deal with Chinese GPU maker Iluvatar CoreX to purchase up to 50,000 AI chips this year, potentially making it ByteDance's third-largest supplier after Huawei and Cambricon.  
- This move reflects a broader trend where Chinese companies are reducing reliance on U.S. AI chips, aiming for semiconductor self-sufficiency amid declining market shares of firms like Nvidia in China.  
- Additionally, ByteDance is also considering a similar agreement with Baidu for its Kulunxin chips, which could heighten competition with rival Tencent.

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ByteDance Is One Deal Away from a 50,000 AI Chip Grab from China's Iluvator CoreX