In response to US export restrictions, ByteDance is shifting its AI development strategy towards domestic suppliers, including Huawei, to enhance its capabilities and navigate market limitations.
ByteDance Turns to Domestic Suppliers for AI Development Amid US Export Curbs
ByteDance, the Chinese parent company of popular social media platform TikTok, is exploring domestic avenues for artificial intelligence (AI) development, leveraging resources from compatriot Huawei Technologies. This strategic shift comes in response to United States-imposed restrictions on the export of advanced AI chips, particularly those from market leader Nvidia, which have left ByteDance pivoting towards alternative suppliers within China.
Sources close to the matter indicate that ByteDance plans to utilise Huawei’s Ascend 910B chips for training a new large-language AI model. The AI sector has increasingly become a pivotal area for technological advancement, spanning various industries from gaming to e-commerce, where custom AI models are used to enhance product offerings through sophisticated decision-making capabilities.
Despite these ambitions, ByteDance spokesman Michael Hughes has refuted claims of developing a new model, stating that the premise is unfounded. Furthermore, Huawei has not responded to inquiries regarding their involvement.
The constraints imposed by U.S. trade policies have compelled ByteDance to expedite its reliance on domestic chipmakers. The company had previously diversified its chip procurement towards local suppliers and has been accelerating the in-house development of necessary components since 2022’s export restrictions. However, the supply of Huawei’s Ascend 910B chips has been sluggish, with ByteDance having ordered over 100,000 units this year but only receiving fewer than 30,000 as of July. This shortage hampers the company’s ability to meet its needs and set a definitive timeline for the new AI model’s launch.
ByteDance’s existing AI capabilities include its flagship large-language model and chatbot Doubao, introduced in August 2023, and a text-to-video tool known as Jimeng. The company recently expanded its offerings with two video-focused Doubao models to enhance its competitive edge against international counterparts like OpenAI. The Doubao chatbot has quickly gained popularity, amassing over 10 million monthly active users, underscoring the increasing prominence of AI-integrated applications.
The rising demand for powerful AI solutions has solidified ByteDance’s position as a top consumer of Huawei’s AI chips. Additionally, ByteDance remains a major purchaser of Nvidia’s H20 AI chip, specifically tailored for the Chinese market to navigate the complexities of trade limitations. The company is also reported to be Microsoft’s largest client in Asia for Nvidia chips available through cloud computing services, reflecting its substantial investment in cutting-edge AI technology.
As ByteDance continues to navigate the intricate landscape of international trade and technological development, its strategic pivot towards domestic suppliers highlights the broader shifts within the technology sector, driven by evolving geopolitical dynamics. The company’s focus on diversifying chip sources and enhancing AI capabilities illustrates the ongoing adaptation required by global tech giants to maintain competitive advantages amid restrictive trade environments.
Source: Noah Wire Services
