ByteDance and Broadcom Collaborate on New AI Chip to Navigate US-China Tech Disputes

TikTok’s owner – the Chinese ByteDance company, collaborated with the U.S. chip designer Broadcom to create an AI processor. The 5-nanometer chip, which would be an application-specific integrated chip (ASIC – a more tailored product—would conform to U.S. export regulations, and be produced by Taiwan Semiconductor Manufacturing Company (TSMC). The move would assist ByteDance in acquiring adequate and high-quality chips amid tensions between the United States and China, according to a Reuters report.

Such a partnership between ByteDance and Broadcom, which is already a business partner, would decrease procurement costs and guarantee a consistent supply of more sophisticated chips. However, it has to be noted that TSMC is not likely to begin manufacturing the new chip this year, as the design remains in the works. Reuters didn’t receive any response from ByteDance or Broadcom, while TSMC didn’t comment.

Limitations

Similar to many global technology companies, ByteDance has recently initiated a key push into generative AI, However, ByteDance and other Chinese AI pioneers face a far less abundant supply of AI chips than their international counterparts. Some are too expensive, resulting from high-end chipsets manufactured by Nvidia, which have been limited by U.S. export control policies seeking to hamper the development of AI and supercomputing in China’s military. Competition for the U.S. chips for the Chinese market as well as similar chip-designed chips from Huawei, one of the only Chinese firms that creates AI accelerators, is stiff.

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Stockpiling

Currently, for ByteDance to enhance the power of the algorithms it employs, it lacks specialized AI chips. Besides TikTok and Douyin, ByteDance has numerous other successful applications, including a ChatGPT-like service called Doubao with 26 million active users. To further their AI development, ByteDance has stockpiled Nvidia chips, such as the A100 and H100 chips bought before the first round of sanctions in the US and the A800 and H800 chips designed for the China market by Nvidia but banned later. ByteDance also purchased Huawei’s Ascend 910B chips last year.

ByteDance has several semiconductor-related job openings, and the company is alleged to have been poaching top-skilled people from other Chinese AI firms. The step to make a new advanced processor with Broadcom is a significant step for ByteDance to secure a stable supply of high-end chips.

Hence, the collaboration between ByteDance and Broadcom to build an advanced AI processor is a magnificent and strategic move. This step will help ByteDance to make more powerful chips for AI. This collaboration has made a significant impact in the growth of AI in the tech industry and with its development, ByteDance is poised to make a significant impact in the AI industry.

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