ByteDance Teams Up with Broadcom for Advanced AI Chip Development
ByteDance, the Chinese technology company that owns TikTok, is collaborating with Broadcom Inc., a U.S. chipmaker, to develop an advanced artificial intelligence (AI) processor.
Why This Partnership?
The main goal of this collaboration is to ensure ByteDance has a reliable supply of AI chips. This is especially important because the U.S. has strict rules on exporting chips to China.
What’s Special About the Chip?
The new chip will use 5 nanometre technology. To comply with U.S. export rules, the chip manufacturing will likely be outsourced to TSMC, the world's largest contract chipmaker.
Existing Relationship
ByteDance and Broadcom already work together. Over the last two years, ByteDance has bought several AI-related chips from Broadcom. This new development means their relationship is getting even stronger.
The Bigger Picture
This partnership shows how Chinese tech companies are trying to secure advanced AI chips. The U.S. has blocked some major chipmakers, like NVIDIA Corporation, from selling their most advanced AI technology to China. While NVIDIA can still sell less advanced chips in China, these have not been very popular.
The Rise of Generative AI
Generative AI (genAI) is a type of AI that can create new content, like text or images. This type of technology has been in high demand. Applications such as OpenAI’s Chat GPT have sparked interest in generative AI over the past year. ByteDance is also reportedly working on its own genAI platform.
AI has created huge demand for global chipmaking companies. Earlier this year, Broadcom increased its earnings forecast, expecting higher demand fueled by AI.
Simple Explanation of Key Terms
- AI (Artificial Intelligence): Technology that allows computers to think and learn like humans. For example, a virtual assistant like Apple's Siri is powered by AI.
- Nanometer (nm): A measure of size. In chip technology, smaller numbers mean more advanced chips. For example, 5 nanometre technology is more advanced than 10 nanometre technology.
- TSMC: The Taiwan Semiconductor Manufacturing Company, the largest company that makes chips for other companies.
- Generative AI: A type of AI that can create new things, like new sentences or images. For example, the text you read in this article could be generated by a generative AI program like Chat GPT.
By understanding these terms and the importance of chip technology, it’s clear why ByteDance's collaboration with Broadcom is a big deal in the tech world.
