ByteDance is collaborating with U.S. chip designer Broadcom on developing an advanced AI processor, according to a report by Reuters. The 5-nanometre chip, a tailor-made product referred to as an application-specific integrated chip (ASIC) will be in compliance with U.S. export restrictions and production work will be outsourced to Taiwan’s TSMC.
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ByteDance’s strategic business alliance with Broadcom, a current business partner, would assist in reducing procurement costs and ensure a stable supply of higher-end chips. Securing AI chips is essential for ByteDance to strengthen its algorithms. ByteDance offers a range of well-known apps, including a chatbot similar to ChatGPT called Doubao, which has 26 million users.
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