In a strategic bid to bypass U.S. export restrictions and reduce its dependence on Nvidia, ByteDance is reportedly in talks with Samsung Electronics to manufacture its first in-house AI chips.
Details of the negotiations emerged on February 11, 2026, revealing a project codenamed “SeedChip” that could significantly alter the hardware landscape for the TikTok parent company.
The “SeedChip” Strategy
ByteDance is shifting from being just a software giant to a custom silicon designer, mirroring the path taken by Google (TPUs) and Amazon (Trainium/Inferentia).
| Metric | Project Details (as of Feb 2026) |
| Codename | SeedChip |
| Primary Function | AI Inference (Processing real-world data/predictions) |
| Initial Target | 100,000 units in 2026 |
| Expansion Goal | Up to 350,000 units |
| Prototype Date | Samples expected by end-March 2026 |
Why Samsung? The “All-in-One” Advantage
While ByteDance previously explored a partnership with Broadcom and TSMC, the shift toward Samsung offers a unique strategic “bundle” that TSMC cannot match:
- Memory Access: The deal reportedly includes access to Samsung’s high-performance memory (HBM), which is in critically short supply globally. For ByteDance, securing the processor (foundry) and the memory from a single source reduces supply chain bottlenecks.
- Geopolitical Hedge: With tightening U.S. curbs on Chinese access to high-end Nvidia GPUs (like the H200), building a custom chip using Samsung’s foundry provides a more stable, long-term infrastructure for ByteDance’s AI-heavy apps like TikTok, Douyin, and the Doubao chatbot.
The $22 Billion AI War Chest
Despite building its own chips, ByteDance is not abandoning Nvidia just yet. The company has allocated a massive 160 billion yuan ($22 billion) for AI procurement in 2026:+1
- Nvidia H200: More than half the budget is still reportedly set aside for purchasing high-end Nvidia chips to maintain immediate competitiveness.
- Internal R&D: The remainder is fueling the SeedChip project and the development of its “Seed” large language models.
Current Status & Denial
In a typical industry move, a ByteDance spokesperson officially labeled the reports as “inaccurate” without providing specifics, while Samsung has declined to comment. However, industry insiders note that ByteDance has been aggressively hiring semiconductor engineers since 2022, and the timeline for March prototypes aligns with the company’s “all-hands” AI push announced in January.+1
The Competitive Landscape
ByteDance is currently playing catch-up in the Chinese domestic market:
- Alibaba: Recently unveiled its Zhenwu chip for large-scale AI.
- Baidu: Is already on its third generation of Kunlunxin chips and plans to list the unit separately soon.
