ByteDance in Final Talks With MediaTek for Custom AI Chips
ByteDance is negotiating with Taiwan's MediaTek for custom AI ASICs for data centers, but no contract has been signed and order volume is undecided.
ByteDance is in the final stages of negotiations with Taiwan's MediaTek to buy custom AI chips for data centers, according to digitaltoday.co.kr. The discussions concern application-specific integrated circuits, or ASICs, designed for a specific customer's computing needs.
The order volume has not been decided and no contract has been signed. If the deal goes through, ByteDance would become MediaTek's second major ASIC customer after Google.
ByteDance has already moved on a similar front. In May, the company agreed to buy millions of data-center AI ASICs from Qualcomm.
MediaTek's ASIC business has drawn backing from Nvidia. In September, Nvidia announced a $3.5 billion investment in MediaTek through convertible bonds, giving MediaTek access to Nvidia's NVLink Fusion platform.
MediaTek expects about $2 billion in AI chip revenue this year and aims for a 15% share of an $80 billion market by 2027. According to Bloomberg, ByteDance is considering raising this year's capital expenditure to as much as $70 billion, with spending potentially approaching $100 billion in 2027. In September, ByteDance secured a $30 billion loan to fund its investments.
Quick answers
Has ByteDance signed a contract with MediaTek for AI chips?
No. The companies are in the final stages of negotiations, but no contract has been signed and the order volume has not been decided.
What kind of chips is ByteDance seeking from MediaTek?
Application-specific integrated circuits (ASICs) designed for a specific customer's computing needs, intended for data centers.
Who is MediaTek's existing major ASIC customer?
Google. If the ByteDance deal is completed, ByteDance would become MediaTek's second major ASIC customer.