ByteDance is in discussions with Samsung Electronics to manufacture its own AI processor, according to Reuters. The TikTok parent aims to receive sample chips by March's end and produce 100,000 units this year, with production potentially scaling to 350,000 units as the company expands its AI infrastructure.

This effort, code-named SeedChip, is part of ByteDance's broader push into AI hardware. The company is reportedly working with Broadcom on an advanced AI processor while planning to spend over 160 billion yuan ($22 billion) on AI procurement in 2025, including purchases of NVIDIA chips. The talks with Samsung also encompass potential access to memory chips, which remain in short supply globally.

ByteDance has disputed the accuracy of the in-house chip project reports without elaboration, while Samsung declined to comment. The reported initiative underscores the intensifying competition in AI hardware development as major tech companies seek to reduce dependence on dominant chip suppliers and build proprietary AI capabilities.