ByteDance is in advanced talks to purchase custom data-center chips from MediaTek, according to Bloomberg1,2. The deal would make the TikTok owner MediaTek's second-largest customer for application-specific integrated circuits after Google.
The chips would support ByteDance's data-center operations as the company expands its AI infrastructure. ByteDance is seeking additional chip suppliers as U.S. export restrictions limit access to Nvidia Corp.'s most advanced AI processors. Volume has not been disclosed, and the agreement has yet to be finalized.
For MediaTek, the potential deal would extend its data-center business beyond its traditional strength in smartphone chips.