ByteDance in talks to buy MediaTek AI chips for data centers

ByteDance is engaged in advanced talks to acquire custom artificial intelligence (AI) chips from Taiwanese semiconductor company MediaTek for its data centers, according to people familiar with the matter. If the deal is finalized, ByteDance would become MediaTek’s second major customer for application-specific integrated circuits (ASICs), following Google.

The move comes as Chinese tech firms seek alternatives amid U.S. export controls restricting access to advanced AI chips from companies like Nvidia. Domestic suppliers, such as Huawei, are also unable to meet the full demand.

This potential order aligns with ByteDance’s broader strategy to bolster its AI infrastructure. The company has also reportedly explored custom silicon design services with Qualcomm and secured an AI chip supply deal with Qualcomm earlier this year.

MediaTek already offers custom ASIC services for data centers and has highlighted the importance of advanced packaging for AI chip innovation.