ByteDance taps MediaTek for custom data center chips - report
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ByteDance (BDNCE) is nearing an agreement to buy custom chips from MediaTek for its data centers, Bloomberg reported, citing people familiar with the discussions.
The potential deal would give TikTok’s owner another source of AI computing hardware while expanding MediaTek’s reach beyond mobile processors.
The talks involve custom application-specific integrated circuits (ASICs) for ByteDance’s (BDNCE) data centers, which could make the TikTok owner MediaTek’s second major customer for the chips after Alphabet (GOOGL).
A major ByteDance contract would support MediaTek’s efforts to expand beyond mobile chips and compete with Qualcomm (QCOM) and Broadcom (AVGO) in the data center market.
MediaTek expects AI chip sales to reach about $2 billion this year and is targeting a 15% share of the $80 billion market next year, the report said.
ByteDance is considering spending up to $70B on data centers and AI infrastructure this year, with outlays potentially reaching $100B in 2027. The company secured a $30B loan in September to fund its expansion.
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