Why is ByteDance looking to buy AI chips from Iluvatar CoreX?

ByteDance is seeking additional AI inference chips to support its growing artificial intelligence operations. A deal with Iluvatar CoreX would diversify its domestic chip supply chain and reduce reliance on a smaller group of suppliers.

What is Iluvatar CoreX and why is it important?

Iluvatar CoreX is a Shanghai-based AI chipmaker focused on graphics processing units (GPUs) and AI acceleration hardware. The company is emerging as one of China's key domestic alternatives to foreign semiconductor providers.

How would a deal affect ByteDance's AI infrastructure?

If completed, Iluvatar CoreX would become ByteDance's third major domestic GPU supplier after Huawei and Cambricon. This would strengthen ByteDance's ability to secure computing power for AI services and applications.

Why are AI inference chips important?

Inference chips power AI models after they have been trained, handling real-world tasks such as chatbots, recommendations, content moderation and search results. As AI adoption grows, demand for inference computing is rising rapidly.

Why are Chinese technology companies increasingly using domestic AI chips?

Chinese firms are pursuing greater technology self-sufficiency amid geopolitical tensions and supply chain restrictions. Domestic chipmakers are becoming increasingly important as companies seek reliable access to AI computing resources.

Image for illustrative purposes only. Not a real photo.

ByteDance eyes third AI chip supplier in China

Written by Heidi Cuthbert Published Jun 15, 2026, 7:36 AM

ByteDance is in discussions with Shanghai-based Iluvatar CoreX to acquire AI chips for inference workloads, according to sources familiar with the matter, as the TikTok owner expands its domestic semiconductor supply network.

The company is also considering a similar procurement agreement with Baidu, reflecting intensifying demand for locally developed AI hardware amid China's push for greater technology self-sufficiency.

If completed, the agreement would make Iluvatar CoreX ByteDance's third major domestic graphics processing unit supplier after Huawei and Cambricon.

The talks underscore how Chinese technology companies are increasingly relying on domestic chipmakers to support artificial intelligence development, particularly for inference tasks that power deployed AI applications.

Iluvatar CoreX is projected to generate 3.04 billion yuan ($449.8 million) in revenue this year, according to a Huatai Securities research note, with annual shipments expected to rise 139% to more than 100,000 chips.

The brokerage estimated that the company's Zhikai inference chips carry an average selling price of around 12,000 yuan ($1,775) per unit.

Following reports of the discussions, shares of Iluvatar CoreX rose 12% in Hong Kong trading as investors responded positively to the prospect of a major supply agreement with ByteDance.