ByteDance Rumored to Partner with Broadcom on AI Chip Design to Cut Costs, But Denies Claims

Recent market rumors suggested that ByteDance, the parent company of TikTok, had entered into an agreement with the American chip manufacturer Broadcom to co-design a specialized chip for AI applications, specifically an ASIC (Application-Specific Integrated Circuit).

The characteristic of this chip is that it is designed and customized for certain specific fields. Unlike conventional chips, for example, the Bitcoin mining machines now use special ASIC chips designed for Bitcoin mining.

The push for ByteDance to design its own chips stems from the ever-increasing demand for computational power in the AI boom, alongside the escalating requirements for technological advancements. Given the high costs and potential procurement challenges of off-the-shelf accelerators like Nvidia's H100, designing a custom chip could be a more viable option.

Broadcom, a leading name in the chip manufacturing industry known for producing a wide range of chips including set-top box chips, power management chips, and network adapter chips, appears to be a strategic partner for ByteDance in this venture. The partnership suggests ByteDance might also navigate around the sanctions related to AI chip manufacturing.

The designed chips are reportedly to be manufactured by TSMC, the Taiwan Semiconductor Manufacturing Company, utilizing their 3nm process technology. However, at this stage, ByteDance's chip is not yet in production, indicating that the design or final validation phase may not be complete.

In response to these rumors, ByteDance issued a brief statement denying the claims without further explanation. It's not uncommon in the tech industry for companies to deny reports that eventually turn out to be true, so the validity of ByteDance's response remains to be seen.