ByteDance, the parent company of TikTok, is developing its own central processing units (CPUs) to support its expanding AI infrastructure, according to sources. The move comes as surging chip prices and prolonged supply shortages constrain the company's growth plans.
The shift toward AI “inference”-where models perform complex, agentic tasks-is driving demand for CPUs, which work alongside Nvidia’s dominant graphics chips. Global hyperscalers like Google, Amazon, and Microsoft are also designing custom CPUs to cut costs and optimize performance.
ByteDance is targeting the deployment of its proprietary CPU in its own servers and data centers. The company is pursuing two chip architectures: one based on Arm Holdings’ technology and another using the open-source RISC-V standard. It has approached external partners to assist with design and manufacturing, though the project remains at an early stage.
Sources say ByteDance currently sources CPUs from Intel and AMD, but prices have increased 10% to 35% quarter-over-quarter, accelerating its push for in-house alternatives. Intel confirmed price updates due to sustained demand, while AMD’s CEO warned the global CPU market is “tight.”
Nvidia is also expanding into the CPU market with its new “Vera” processors, aiming to tap a $200 billion market, intensifying competition in the AI chip space.