ByteDance Nears Deal for MediaTek AI Chips for Data Centers
ByteDance is in advanced talks to purchase custom AI chips from MediaTek for its data centers. The agreement would make the TikTok owner a significant customer for MediaTek's chip business.
ByteDance is in advanced discussions to acquire custom data-center chips from MediaTek, according to Bloomberg. The potential deal would position the parent company of TikTok as a major client for MediaTek's application-specific integrated circuit (ASIC) business, possibly becoming its second-largest customer after Google.
The chips are intended to support ByteDance's expanding data-center operations and artificial intelligence infrastructure. Specific details regarding the volume of chips under discussion have not been disclosed, and the agreement remains subject to finalization.
This move comes as ByteDance seeks to diversify its chip suppliers amid U.S. export restrictions that impact access to advanced AI processors from companies like Nvidia. For MediaTek, this potential transaction would represent a significant expansion into the data-center market beyond its established strength in smartphone chip manufacturing.