ByteDance is negotiating to purchase a minimum of 50,000 AI inference GPUs from Shanghai-based Iluvatar CoreX, a move that underscores how aggressively Chinese tech giants are building their own chip ecosystems outside of Nvidia’s reach.
Beyond the Iluvatar CoreX negotiations, ByteDance is also exploring similar contracts with Baidu’s Kunlunxin AI chips. The strategy diversifies supply lines across multiple domestic vendors rather than relying on a single source vulnerable to geopolitical restrictions.
Iluvatar CoreX specializes in general-purpose GPUs built on 7nm-class process technology. The company’s flagship TianGai-100 series is designed to compete directly with Nvidia’s A100 and A800 chips in AI training and inference workloads.
ByteDance has also been developing its own custom AI silicon and was reportedly in talks with Samsung as recently as February 2026 regarding manufacturing partnerships. The company is pursuing three parallel tracks: buying from Iluvatar, buying from Baidu’s chip unit, and building proprietary chips.
US export restrictions on advanced chip shipments to China have tightened considerably, with Nvidia’s most powerful processors repeatedly caught in the crossfire. Beijing has responded by aggressively advocating for semiconductor self-reliance and encouraging major tech firms to localize their supply chains. The deal remains in early stages, with terms and timelines not yet confirmed.