ByteDance, the Chinese parent company of TikTok, is developing proprietary artificial intelligence chips and negotiating with Samsung Electronics to manufacture them, according to people familiar with the matter.

According to a Reuters report published on February 11, 2026, the initiative represents ByteDance's effort to secure a stable supply of advanced processors amid intensifying competition in the AI sector.

Two sources with knowledge of the discussions told Reuters that ByteDance plans to receive chip samples by the end of March. The company intends to produce at least 100,000 chips specifically designed for AI inference tasks this year, with plans to gradually scale production to 350,000 units, according to one source and another person familiar with the matter.

The negotiations with Samsung are particularly attractive because they include access to memory chips, which are experiencing severe global supply shortages, one source said. This component of the deal could provide ByteDance with a critical advantage in securing necessary hardware for its AI operations.

ByteDance is planning to spend more than RMB 160 billion yuan (US$22 billion) on AI-related procurement in 2026, with over half allocated to purchasing Nvidia chips including the H200 model and advancing its proprietary chip development project, according to one source.

When contacted for comment, a ByteDance spokesperson said information regarding its in-house chip project was inaccurate but declined to elaborate further. Samsung declined to comment on the matter.

The move signals ByteDance's determination to reduce dependence on external chip suppliers and gain greater control over its AI infrastructure. As major technology companies worldwide race to develop AI capabilities, securing reliable access to advanced semiconductors has become increasingly strategic, particularly for Chinese firms navigating complex international supply chain dynamics.

The outcome of these negotiations could significantly impact ByteDance's ability to scale its AI services and compete with rivals investing heavily in similar technologies.