ByteDance, the parent company of TikTok, is reportedly in talks with Iluvatar CoreX and Baidu Inc.  (NASDAQ:BIDU) to acquire AI chips. 

Iluvatar CoreX is projected to deliver at least 50,000 chips to ByteDance this year, primarily for AI inference tasks, as the company broadens the user base of its Doubao chatbot.

If the deal goes through, Iluvatar CoreX would become ByteDance’s third major domestic GPU supplier, following Huawei and Cambricon, according to a Reuters report on Monday.

ByteDance is also considering the use of Baidu’s Kunlunxin chips, which are already used by Tencent Holdings (OTC:TCEHY). These potential deals highlight the increasing success of Chinese chipmakers in providing alternatives to foreign AI chips, aligning with Beijing’s push for greater self-reliance in advanced chip technology.

ByteDance did not immediately respond to Benzinga’s request for comments.