ByteDance Turns to Domestic Chips as Second-Tier Makers Compete for AI Cloud Infrastructure Orders
Alina Collins
ByteDance is redirecting AI chip procurement toward smaller Chinese suppliers, having already purchased tens of thousands of processors from Iluvatar CoreX. This means → U.S. export controls are pushing China's largest cloud buyer toward a cohort of domestic chipmakers yet to prove they can deliver at scale.
Who is ByteDance buying from?
ByteDance has bulk-ordered tens of thousands of AI processors from Shanghai-based Iluvatar CoreX (天数智芯) at favorable pricing, according to sources cited by the South China Morning Post.
The company is also in talks with Biren Technology, MetaX Integrated Circuits, Moore Threads, and Enflame Technology over potential additional orders.
All five sit outside the top tier of Huawei and Cambricon — smaller players now competing for a marquee customer.
Why not keep buying Nvidia?
U.S. export controls have cut off Nvidia's high-end AI chips from the Chinese market. ByteDance, one of China's largest cloud providers, faces acute pressure to find alternative compute.
Beijing's push for domestic semiconductor substitution is accelerating the shift further.
In plain terms = ByteDance is not switching suppliers by choice — Nvidia's chips can no longer get in, so domestic is the only path left.
Can second-tier makers handle orders this large?
The core test for Iluvatar CoreX, Biren, and their peers is volume production capability and product maturity — designing a chip is one thing; delivering tens of thousands reliably is another.
This means → whether these firms can fill orders from a customer of ByteDance's scale will determine if they cross from "working prototype" to "production-grade supplier."
This reflects a new phase in China's AI chip supply chain: demand has arrived, but supply is still catching up.
Content is for reference only, not financial advice.