ByteDance Explores AI Chip Partnerships with Iluvatar CoreX and Baidu: A Step Towards Self-Reliance in China's AI Hardware Sector
ByteDance, a Chinese technology company, is currently in discussions with Iluvatar CoreX, a Shanghai-based company, to potentially purchase AI chips for inference work. Additionally, ByteDance is exploring a similar deal with Baidu. If finalized, Iluvatar CoreX would become ByteDance's third major domestic supplier of GPUs, following Huawei and Cambricon. ByteDance is also considering utilizing Baidu's Kunlunxin chips, with Tencent already being a customer of these chips.
The potential agreements highlight the growing efforts of Chinese chipmakers to provide alternatives to foreign AI chips, aligning with Beijing's push for self-reliance in the face of U.S. export controls on advanced chips. Chinese GPU and AI chip manufacturers have made significant strides in capturing a substantial portion of China's AI accelerator server market, challenging Nvidia's once-dominant position in the country.
Iluvatar CoreX, a prominent GPU startup in China, is anticipated to supply at least 50,000 chips to ByteDance this year, primarily for inference workloads. These chips will support ByteDance's AI chatbot Doubao as the company expands its customer base. The potential deals are still in progress and subject to change.
A partnership with ByteDance, a major player in the technology industry, would mark a significant commercial achievement for Iluvatar CoreX, which has primarily focused on government procurement projects until now. The company, which went public in Hong Kong earlier this year, has seen substantial revenue growth driven by the increasing demand for domestic AI hardware.
Iluvatar CoreX's Tiangai series chips are designed for AI training, while the Zhikai series is optimized for inference tasks. The company's revenue is projected to reach 3.04 billion yuan this year, with total chip shipments expected to surge by 139% to over 100,000 units. According to industry estimates, the Zhikai inference chips have an average selling price of 12,000 yuan each.
In conclusion, the potential collaborations between ByteDance and Iluvatar CoreX, as well as Baidu, underscore the advancements made by Chinese chipmakers in the AI hardware sector. These partnerships reflect the growing trend towards domestic chip solutions and the pursuit of self-sufficiency in critical technology areas.