Exclusive: ByteDance Plans New AI Model Trained with Huawei Chips, Sources Say

ByteDance, the Chinese parent company of TikTok, is reportedly focusing on developing an artificial intelligence (AI) model that will primarily utilize chips from Huawei Technologies. This shift comes as the company seeks alternative chip sources in light of U.S. export restrictions that have directed its attention back to domestic suppliers.

In response to the limitations imposed by the U.S. on advanced AI chip exports, including those from leading supplier Nvidia, ByteDance has begun diversifying its supply chain and accelerating its internal chip development. AI technology has become pivotal across the tech industry, with various sectors like gaming and e-commerce leveraging custom AI models to enhance their offerings.

According to sources familiar with the situation, ByteDance intends to utilize Huawei’s Ascend 910B chip to train a new large-language AI model. However, additional insight from another individual indicated that while ByteDance is indeed working on a new AI model, it remains unclear whether this will involve Huawei’s chips.

Currently, ByteDance uses the Ascend 910B chip mainly for inference tasks, which involve making predictions based on pre-trained models. Training new AI models, however, is significantly more resource-intensive and requires vast amounts of data, needing high-performance chips typically associated with Nvidia.

The new model’s capabilities will reportedly be less powerful compared to ByteDance’s existing AI model, Doubao. When approached for comment, ByteDance did not provide a response, while a spokesperson for TikTok denied that any new model development is underway. Huawei also did not respond to inquiries.

Supply chain issues have impacted ByteDance’s ability to obtain the necessary chips to meet its demands. The company has ordered over 100,000 Ascend 910B chips this year but has received fewer than 30,000 by July, leading to delays in establishing a timeline for the new model.

ByteDance’s current AI capabilities are evident in its large-language model launched in August 2023, now branded as the Doubao chatbot, along with other applications like a text-to-video tool called Jimeng. The usage of these applications has surged, with the Doubao chatbot gaining over 10 million monthly active users, making it one of the most popular apps in China.

This increased focus on AI has positioned ByteDance as a significant purchaser of Huawei’s AI chips. Additionally, it is recognized as the largest buyer of Nvidia’s H20 AI chip tailored for the Chinese market, and also serves as Microsoft’s largest client in Asia for Nvidia chips available through cloud computing.

ByteDance reportedly allocated $2 billion for Nvidia chips last year. However, Nvidia and Microsoft declined to comment on these developments.