China Economic Review
Charting China’s changing economic terrain · Since 1990

ByteDance in talks with China’s Iluvatar Core X and Baidu over AI chips

June 15, 2026

Chinese technology company ByteDance is in talks with Shanghai-based Iluvatar ‌CoreX to purchase AI chips for inference work and is also considering a similar deal with Baidu, reports Reuters citing two sources familiar with the matter.

If a deal is agreed, Iluvatar CoreX would become ByteDance’s third major domestic supplier of graphics processing units (GPUs) after Huawei and Cambricon, the sources ​added.

TikTok parent ByteDance is also considering using Kunlunxin chips, they said, declining to be named as the talks ​are not public. Tencent is already a Kunlunxin chip customer, according to one of the sources.

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