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ByteDance making custom CPU chips to support AI rollout, sources say

Reuters Videos Thu, May 28, 2026 at 5:48 AM EDT Explore stocks on Coinbase Trading disclosure STORY: Chinese tech giant ByteDance is developing its own central processing units (CPUs) to support its growing AI infrastructure needs, according to three sources.The TikTok-parent’s move comes as surging chip prices and prolonged supply shortages constrain its expansion plans.It…

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ByteDance making custom CPU chips to support AI rollout, sources say

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<span>STORY: Chinese tech giant ByteDance is developing its own central processing units (CPUs) to support its growing AI infrastructure needs, according to three sources.</span><span>The TikTok-parent’s move comes as surging chip prices and prolonged supply shortages constrain its expansion plans.</span><span>It shows the industry’s rapid shift towards autonomous AI models that demand more from CPUs.</span><span>Working in tandem with the dominant graphics chips made by Nvidia.</span><span>But it’s created a shortage of CPUs in recent months.</span><span>A growing number of tech companies have concluded the economics of custom chips outweigh the complexity of designing them.</span><span>Global hyperscalers including Google, Amazon and Microsoft are also developing their own custom CPUs.</span><span>They aim to reduce costs and tailor to their specific workloads.</span><span>The first source said Bytedance is targeting deployment of its own CPU in its servers and data centers to support internal operations.</span><span>That’s as it prepares a massive rollout of agent-based products.</span><span>The Beijing-based company has approached several external partners to assist with the effort, the sources claim.</span><span>ByteDance did not respond to Reuters’ request for comment.</span>

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