ByteDance to Develop Custom AI Chips with TSMC by 2026

The TikTok parent company aims to reduce its reliance on NVIDIA despite recent denials of in-house chip development.

ByteDance is reportedly working on two AI GPUs for training and inference, set to enter mass production by 2026.
The AI chips will be produced using TSMC's advanced 5nm process technology.
Despite recent denials, ByteDance's move aims to lessen dependence on NVIDIA due to high costs and supply shortages.
ByteDance has invested over $2 billion in NVIDIA AI GPUs this year, with many units yet to be delivered.
The company faces the challenge of developing a compatible software stack for its new AI hardware.