ByteDance Targets Domestic AI Chips From Iluvatar CoreX Amid Rising US Export Restrictions

TikTok parent ByteDance is currently in advanced discussions with Shanghai-based startup Iluvatar CoreX to secure AI chips for inference workloads. The potential deal, which could see the delivery of at least 50,000 chips this year, positions Iluvatar CoreX to become a major domestic supplier alongside existing partners Huawei and Cambricon. ByteDance is also exploring sourcing options from Baidu’s Kunlunxin division as it seeks to reduce reliance on foreign-produced semiconductor hardware.

The move follows tightening U.S. export controls on advanced semiconductors, which have effectively eliminated Nvidia’s market share in China. As Beijing aggressively promotes indigenous technology to achieve long-term autonomy, Chinese GPU and AI accelerator firms have rapidly expanded their footprint, capturing nearly 41% of the domestic AI server market last year. Startups like Iluvatar CoreX are scaling production significantly, with total shipments projected to jump 139% to over 100,000 units this year.

A finalized agreement with ByteDance would represent a major commercial validation for Iluvatar CoreX, which has traditionally focused on government procurement projects. While inference tasks—answering queries and powering chatbots like Doubao—differ from the resource-intensive training of frontier models, the trend signals a broader transition toward local hardware stacks across China's largest technology platforms. Investors have responded positively, with shares of Iluvatar CoreX rising 12% in Hong Kong following the news.