In the wake of escalating U.S. trade restrictions on the export of advanced AI chips, ByteDance, the Chinese tech giant and parent company of TikTok, is increasingly turning to domestic chip suppliers, particularly Huawei Technologies. This strategic pivot underscores ByteDance’s drive to sustain and expand its artificial intelligence (AI) capabilities, despite challenges in accessing high-performance chips from global market leaders like Nvidia.
Since 2022, when the U.S. imposed restrictions on the export of advanced AI chips, such as Nvidia’s premium graphics processing units (GPUs), ByteDance has been diversifying its chip suppliers. The company has accelerated its reliance on domestic alternatives to keep pace with the rapid advancements in AI across various industries. One such domestic partner is Huawei, whose Ascend 910B chips are now being considered for ByteDance’s next large-language AI model, according to three sources familiar with the matter.
Although the plan remains confidential, the sources indicate that ByteDance is preparing to leverage Huawei’s chips for its AI training processes. A fourth individual confirmed the company's focus on a new AI model but could not specify whether it would use Huawei's chips. Despite these revelations, TikTok spokesperson Michael Hughes firmly rejected the idea, stating, “The entire premise here is wrong. No new model is being developed.”
Challenges of AI Model Training
Training AI models is an extraordinarily data-intensive process, requiring high-performance chips capable of processing vast amounts of information. Nvidia’s advanced GPUs, which dominate the AI chip market, are typically favored for this kind of heavy computational workload. However, with Nvidia’s most powerful chips now largely restricted from being exported to China, ByteDance has had to seek alternatives, like Huawei’s Ascend 910B chips.
While the Ascend 910B is already being used by ByteDance for less computationally intensive AI tasks, such as inference—where pre-trained models make predictions—its capabilities for more demanding AI training are less robust. This new model, should it materialize, is expected to be less powerful than ByteDance’s current flagship AI model, Doubao, which was launched in August 2023. According to one source, this new model will have fewer computing parameters than Doubao, which suggests it may be more limited in scope and performance.
ByteDance’s Doubao chatbot, which rapidly gained popularity with over 10 million monthly active users, is one of the company’s most prominent AI applications. Other notable AI-driven products include Jimeng, a text-to-video tool, and two recently launched video-focused Doubao models aimed at competing with OpenAI’s video creation capabilities.
Supply Constraints and Development Delays
ByteDance’s dependency on Huawei chips, however, is not without complications. The company has ordered over 100,000 Ascend 910B chips this year, but by July, it had received fewer than 30,000. This slow pace of delivery has hindered ByteDance’s ability to fully meet its AI ambitions. Two sources close to the company noted that this constrained supply, coupled with the chips' relatively limited computing power compared to Nvidia’s offerings, has prevented ByteDance from setting a definitive timeline for its new AI model.
The slow rollout of Huawei chips is particularly problematic given the growing importance of AI in industries like gaming, e-commerce, and social media. These sectors are increasingly relying on custom AI models to differentiate their products and services, making access to top-tier AI chips more critical than ever.
Despite these challenges, ByteDance remains one of the largest buyers of Huawei’s AI chips. The company is also the biggest purchaser of Nvidia’s H20 AI chip, a version of Nvidia’s product that has been tailored for the Chinese market to comply with U.S. export restrictions. Moreover, ByteDance is Microsoft’s largest client in Asia for Nvidia chips accessible via cloud computing, further illustrating the company’s vast AI demands.
ByteDance’s Expanding AI Ecosystem
ByteDance’s commitment to AI development is not limited to hardware procurement. The company has invested heavily in its AI-driven products and applications. Following Doubao's launch in 2023, ByteDance has continued to innovate in AI-powered tools designed to enhance its users’ experience across platforms like TikTok and Douyin (the Chinese counterpart to TikTok).
One notable example is ByteDance’s introduction of two video-focused Doubao models earlier this year, which were designed to compete directly with OpenAI in video creation. The demand for AI-powered applications, particularly those that can handle complex tasks like video editing and generation, has skyrocketed, positioning ByteDance as a major player in China’s AI landscape.
According to industry insiders, ByteDance’s increasing emphasis on AI has been driven not only by competition but also by the explosive growth of its AI applications. Doubao, in particular, has emerged as one of China’s most popular apps, demonstrating the enormous potential of AI in engaging millions of users.
AI Investment and Future Prospects
Reports suggest that ByteDance allocated as much as $2 billion last year for Nvidia chips alone, reflecting its deep commitment to maintaining a competitive edge in AI development. The company’s AI aspirations, however, are tempered by the realities of supply constraints and global trade policies. As U.S. export restrictions continue to limit access to the most advanced AI chips, ByteDance will need to navigate a complex landscape of domestic and international suppliers to meet its needs.
Despite these obstacles, ByteDance's AI ecosystem continues to grow, underscoring the company's resilience in the face of technological and geopolitical challenges. Its reliance on Huawei chips and alternative solutions like Nvidia’s H20 AI chip illustrates its adaptability, even as it grapples with the limitations imposed by external factors.
ByteDance’s role as a major AI player, both in China and internationally, is unlikely to diminish. While it remains to be seen how effectively the company can manage its chip supply issues, its track record of AI-driven innovation suggests that it will continue to be a formidable force in the global tech industry.
As the company expands its AI capabilities, ByteDance’s ability to leverage domestic suppliers like Huawei may become increasingly important in maintaining its competitive position in a rapidly evolving market.
(Source:www.reuters.com)
Since 2022, when the U.S. imposed restrictions on the export of advanced AI chips, such as Nvidia’s premium graphics processing units (GPUs), ByteDance has been diversifying its chip suppliers. The company has accelerated its reliance on domestic alternatives to keep pace with the rapid advancements in AI across various industries. One such domestic partner is Huawei, whose Ascend 910B chips are now being considered for ByteDance’s next large-language AI model, according to three sources familiar with the matter.
Although the plan remains confidential, the sources indicate that ByteDance is preparing to leverage Huawei’s chips for its AI training processes. A fourth individual confirmed the company's focus on a new AI model but could not specify whether it would use Huawei's chips. Despite these revelations, TikTok spokesperson Michael Hughes firmly rejected the idea, stating, “The entire premise here is wrong. No new model is being developed.”
Challenges of AI Model Training
Training AI models is an extraordinarily data-intensive process, requiring high-performance chips capable of processing vast amounts of information. Nvidia’s advanced GPUs, which dominate the AI chip market, are typically favored for this kind of heavy computational workload. However, with Nvidia’s most powerful chips now largely restricted from being exported to China, ByteDance has had to seek alternatives, like Huawei’s Ascend 910B chips.
While the Ascend 910B is already being used by ByteDance for less computationally intensive AI tasks, such as inference—where pre-trained models make predictions—its capabilities for more demanding AI training are less robust. This new model, should it materialize, is expected to be less powerful than ByteDance’s current flagship AI model, Doubao, which was launched in August 2023. According to one source, this new model will have fewer computing parameters than Doubao, which suggests it may be more limited in scope and performance.
ByteDance’s Doubao chatbot, which rapidly gained popularity with over 10 million monthly active users, is one of the company’s most prominent AI applications. Other notable AI-driven products include Jimeng, a text-to-video tool, and two recently launched video-focused Doubao models aimed at competing with OpenAI’s video creation capabilities.
Supply Constraints and Development Delays
ByteDance’s dependency on Huawei chips, however, is not without complications. The company has ordered over 100,000 Ascend 910B chips this year, but by July, it had received fewer than 30,000. This slow pace of delivery has hindered ByteDance’s ability to fully meet its AI ambitions. Two sources close to the company noted that this constrained supply, coupled with the chips' relatively limited computing power compared to Nvidia’s offerings, has prevented ByteDance from setting a definitive timeline for its new AI model.
The slow rollout of Huawei chips is particularly problematic given the growing importance of AI in industries like gaming, e-commerce, and social media. These sectors are increasingly relying on custom AI models to differentiate their products and services, making access to top-tier AI chips more critical than ever.
Despite these challenges, ByteDance remains one of the largest buyers of Huawei’s AI chips. The company is also the biggest purchaser of Nvidia’s H20 AI chip, a version of Nvidia’s product that has been tailored for the Chinese market to comply with U.S. export restrictions. Moreover, ByteDance is Microsoft’s largest client in Asia for Nvidia chips accessible via cloud computing, further illustrating the company’s vast AI demands.
ByteDance’s Expanding AI Ecosystem
ByteDance’s commitment to AI development is not limited to hardware procurement. The company has invested heavily in its AI-driven products and applications. Following Doubao's launch in 2023, ByteDance has continued to innovate in AI-powered tools designed to enhance its users’ experience across platforms like TikTok and Douyin (the Chinese counterpart to TikTok).
One notable example is ByteDance’s introduction of two video-focused Doubao models earlier this year, which were designed to compete directly with OpenAI in video creation. The demand for AI-powered applications, particularly those that can handle complex tasks like video editing and generation, has skyrocketed, positioning ByteDance as a major player in China’s AI landscape.
According to industry insiders, ByteDance’s increasing emphasis on AI has been driven not only by competition but also by the explosive growth of its AI applications. Doubao, in particular, has emerged as one of China’s most popular apps, demonstrating the enormous potential of AI in engaging millions of users.
AI Investment and Future Prospects
Reports suggest that ByteDance allocated as much as $2 billion last year for Nvidia chips alone, reflecting its deep commitment to maintaining a competitive edge in AI development. The company’s AI aspirations, however, are tempered by the realities of supply constraints and global trade policies. As U.S. export restrictions continue to limit access to the most advanced AI chips, ByteDance will need to navigate a complex landscape of domestic and international suppliers to meet its needs.
Despite these obstacles, ByteDance's AI ecosystem continues to grow, underscoring the company's resilience in the face of technological and geopolitical challenges. Its reliance on Huawei chips and alternative solutions like Nvidia’s H20 AI chip illustrates its adaptability, even as it grapples with the limitations imposed by external factors.
ByteDance’s role as a major AI player, both in China and internationally, is unlikely to diminish. While it remains to be seen how effectively the company can manage its chip supply issues, its track record of AI-driven innovation suggests that it will continue to be a formidable force in the global tech industry.
As the company expands its AI capabilities, ByteDance’s ability to leverage domestic suppliers like Huawei may become increasingly important in maintaining its competitive position in a rapidly evolving market.
(Source:www.reuters.com)