Chinese technology company ByteDance is in discussions with Iluvatar CoreX and Baidu to purchase artificial intelligence chips for inference workloads, according to sources familiar with the matter.
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If finalized, the agreement would position Iluvatar CoreX as ByteDance’s third major domestic GPU supplier, alongside Huawei and Cambricon.
Expansion of Domestic Chip Partnerships
Sources said ByteDance is evaluating Iluvatar CoreX for large-scale AI chip supply. The company is also considering Baidu’s Kunlunxin chips for similar use cases.
Tencent already uses Baidu’s Kunlunxin chips, according to one of the sources. However, ByteDance, Iluvatar CoreX, Baidu, and Tencent have not publicly commented on the discussions.
Focus on AI Inference Workloads
The proposed chips would mainly support inference tasks, which involve processing user queries and running AI applications.
This differs from training workloads, which require higher computing power and more advanced hardware.
Sources indicated that Iluvatar CoreX may supply tens of thousands of chips to ByteDance if a deal is completed.
China’s Push for Semiconductor Self-Reliance
The potential agreements reflect China’s broader effort to strengthen its domestic semiconductor ecosystem.
Beijing continues to encourage companies to reduce reliance on foreign AI chips amid ongoing US export restrictions.
Industry data suggests Chinese chipmakers captured a significant share of the domestic AI accelerator market last year, reducing the dominance of foreign suppliers.
Market Position of Iluvatar CoreX
Iluvatar CoreX, which listed in Hong Kong earlier this year, has primarily served government-related projects in the past.
A deal with ByteDance would mark a major commercial expansion for the Shanghai-based company.
The firm reported strong revenue growth driven by rising demand for domestic AI hardware, particularly its inference-focused chip series.
Analysts expect continued growth in shipments as China’s AI infrastructure market expands rapidly.
