TikTok Owner ByteDance Develops AI Chip with Samsung

February 12, 2026 Dr. Michael Lee – Health Editor Health

ByteDance, the parent company of TikTok, is in negotiations with Samsung Electronics to manufacture a new artificial intelligence chip, according to multiple sources familiar with the matter. The move signals a significant push by the Chinese tech giant to secure its supply chain for advanced processors and reduce reliance on external suppliers amid increasing geopolitical tensions and export restrictions.

The chip, internally codenamed “SeedChip,” is designed for AI inference tasks – the process of applying a trained AI model to new data to make predictions or decisions. ByteDance aims to receive sample chips by the finish of March and plans to produce at least 100,000 units this year, with a potential ramp-up to 350,000 units, sources said.

Negotiations with Samsung extend beyond manufacturing to include access to crucial memory chip supplies, which are currently facing global shortages due to high demand from the rapidly expanding AI infrastructure sector. This access is considered a key incentive for ByteDance in pursuing the partnership, according to one source.

ByteDance’s efforts to develop its own AI chip date back to at least 2022, with the company actively recruiting personnel with expertise in chip-related fields. Prior to the Samsung discussions, ByteDance was reportedly collaborating with U.S. Chip designer Broadcom on an advanced AI processor, with manufacturing initially planned for Taiwan’s TSMC, Reuters reported in June 2024.

The development of in-house AI chips is a trend gaining momentum among global tech giants, including Alphabet’s Google, Amazon, and Microsoft, all seeking to lessen their dependence on Nvidia, the current dominant supplier of advanced chips for AI development.

ByteDance has publicly denied the accuracy of reports detailing its in-house chip project, issuing a statement that did not elaborate on the specifics. Samsung declined to comment on the negotiations.

The reported $22 billion AI investment push by ByteDance underscores the strategic importance of securing its own AI hardware capabilities. This move is also seen as a response to U.S. Export controls, which have created challenges for Chinese tech firms in acquiring high-end chips for AI development.

The potential partnership with Samsung represents a significant milestone for ByteDance, positioning it alongside other tech leaders in the development of custom AI silicon. The company’s long-term goal appears to be establishing a self-sufficient AI infrastructure, reducing its vulnerability to external geopolitical factors and supply chain disruptions.