ByteDance Negotiates Custom AI Chips from MediaTek

ByteDance Ltd. is in advanced negotiations to purchase bespoke data center semiconductors from MediaTek Inc. The agreement would provide the owner of TikTok with Application Specific Integrated Circuits (ASICs) specifically customized for its data center platforms.

This deal represents a strategic move for MediaTek to compete more effectively with Qualcomm Inc. If finalized, ByteDance would become the second major customer for MediaTek's customized chips, following a similar arrangement with Alphabet Inc.'s Google.