TikTok's parent company, ByteDance, is reportedly pivoting its strategy to train new artificial intelligence (AI) models using chips from Huawei Technologies, as it navigates tightening U.S. export restrictions on advanced technology. Multiple sources have confirmed this development, highlighting how the U.S. government's measures have compelled ByteDance to seek domestic alternatives amid growing geopolitical tensions.
The digital media giant is said to be interested in Huawei's Ascend 910B chips, which are positioned as alternatives to those previously sourced from Nvidia. This shift reflects not only ByteDance's challenges but also broader trends among Chinese tech firms striving to reduce dependency on foreign chip supplies. ByteDance has placed orders for over 100,000 of these chips, with about 30,000 already received, according to insiders.
The Ascend 910B's competitiveness rests partially on its reputed superior performance compared to Nvidia's A100 chips, particularly in GPU operations and computing efficiency. Despite these advantages, the production hurdles faced by Huawei, such as outdated fabrication equipment and supply chain issues, are complicate ByteDance's plans to roll out its new AI model effectively.
Originally, ByteDance utilized Nvidia's chips which were engineered for the Chinese market but were shielded from U.S. trade restrictions. This reversal marks the beginning of ByteDance's pursuit to integrate more local suppliers and fuel the development of its own chip technology as U.S.-China relations continue to fluctuate.
ByteDance has also been active on another front, having collaborated with Taiwan Semiconductor Manufacturing Company (TSMC) to design chips intended for mass production by 2026. This not only indicates ByteDance's proactive adaptation to the ever-changing semiconductor market but also reflects the increasing urgency for China's tech firms to innovate independently of Western technologies.
Investigations reveal the Chinese government is backing these moves to bolster local technology leaders, encouraging firms to cultivate indigenous capabilities, especially concerning AI chips. This initiative coincides with ByteDance's attempts to secure local suppliers, as U.S. restrictions have gradually curtailed access to advanced semiconductor technology.
While details on ByteDance's specific AI model are still under wraps, sources suggested it would not be as powerful as their previous model dubbed Doubao, which was released last August. ByteDance's spokesperson, shaking off speculation, remarked, "No new AI model is being developed," raising eyebrows among industry analysts who still view this pivot as significant.
Huawei, meanwhile, has not yet responded to inquiries seeking clarification on its chip production status and its plans to support ByteDance's new endeavors. The challenges of pushing out the Ascend 910B chips are emblematic of the broader struggles faced by Chinese firms striving for technological self-reliance amid burgeoning international scrutiny.
Trade analysts point out the reality of cramping supply chains and the necessity for Chinese firms like ByteDance and Huawei to broaden their operational bases. This is especially highlighted by the tough conditions imposed by U.S. trade policies, which have historically targeted some tech sectors with various restrictions.
This transition within ByteDance echoes broader shifts within China's tech ecosystem, wherein firms are striving to innovate independently, leveraging homegrown designs potentially backed by state policy.
Beyond economic impacts, the technological choices made by major players like ByteDance could influence the competitive environment within the global AI arena. With Nvidia's chips restricted, this could lead to significant shifts within industries reliant on advanced AI technologies—from gaming to e-commerce—as firms are pushed to integrate domestic alternatives and press forward innovation under the pressures imposed by geopolitical tensions.
Despite ByteDance's claims of halting new model developments, the scrapping of dependency on U.S. technologies appears to be well underway. This move highlights the importance of local technological prowess, as businesses navigate challenges posed by international market dynamics and operational limitations.
These developments serve as key indicators of how companies adapt, innovate and survive amid tense global relations, enlightening the world on how China’s vast tech industry is being shaped by both internal strategies and external pressures.
