ByteDance, the parent company of TikTok, is set to develop a new AI model using Huawei chips. This strategic move comes in response to the U.S. restrictions on the export of advanced AI chips, including those from Nvidia.
Shift to Domestic Suppliers
In light of the U.S. export restrictions imposed in 2022, ByteDance has accelerated its efforts to diversify its sources of AI chips. The company has turned to domestic suppliers, with Huawei’s Ascend 910B chip being a key component in their new AI model. This shift ensures a steady supply of necessary hardware and strengthens the domestic tech ecosystem in China.
The Role of Huawei Chips Ascend 910B Chip
Huawei’s Ascend 910B chip will be used to train ByteDance’s new large-language AI model. Training AI models is a resource-intensive process that requires vast amounts of data and high-performance chips. Traditionally, Nvidia’s premium graphics processing units (GPUs) have been the go-to for such tasks. The Ascend 910B chip, known for its high computational power and efficiency, is expected to meet the demanding requirements of AI model training.
Comparing the New Model to Doubao
The new AI model’s capabilities and complexity will be less powerful than ByteDance’s existing AI model, Doubao. Despite this, the new model is expected to play a significant role in ByteDance’s AI strategy. Doubao, ByteDance’s flagship large-language model, has set a high benchmark with its advanced features and widespread applications. The new model, while less powerful, will complement Doubao by addressing specific needs and expanding ByteDance’s AI portfolio.
Supply Chain Challenges
ByteDance has faced challenges in securing a sufficient supply of Huawei’s Ascend 910B chips. The company ordered over 100,000 chips this year but had received fewer than 30,000 by July. This slow pace of supply has hindered ByteDance’s ability to meet its development needs. The supply chain bottleneck highlights the broader challenges faced by tech companies in securing advanced hardware amidst geopolitical tensions and trade restrictions.
Current AI Technology and Applications
ByteDance’s current AI technology is utilized in its flagship large-language model, Doubao, and other applications. Doubao, launched in August 2023, has become one of China’s most popular apps, with over 10 million monthly active users. The company also introduced two video-focused Doubao models this month to compete with OpenAI. These models leverage advanced AI to enhance video content creation, offering features such as automated editing, content recommendations, and real-time analytics.
ByteDance’s Position in the AI Chip Market
ByteDance is one of the largest buyers of Huawei’s AI chips and Nvidia’s H20 AI chip. This significant investment in AI technology underscores ByteDance’s commitment to maintaining its competitive edge in the rapidly evolving tech landscape. By securing a diverse supply of AI chips, ByteDance aims to mitigate risks associated with supply chain disruptions and ensure the continuous development of its AI capabilities.
Strategic Implications
The development of a new AI model using Huawei chips has strategic implications for ByteDance. It reflects the company’s adaptability and resilience in navigating international trade restrictions. By leveraging domestic technology, ByteDance ensures the continuity of its AI projects supports the growth of China’s semiconductor industry. This move aligns with broader national goals of technological self-sufficiency and innovation.
ByteDance’s plan to develop a new AI model using Huawei chips highlights the company’s adaptability in the face of international trade restrictions. By leveraging domestic technology, ByteDance aims to continue its growth and innovation in the AI sector, despite the challenges posed by supply chain constraints and geopolitical tensions. The success of this initiative will depend on ByteDance’s ability to secure a steady supply of high-performance chips and effectively integrate them into its AI development processes.