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ByteDance Reportedly Building Custom CPUs to Power Its AI Services

Reportedly designed to reduce reliance on expensive external processors to power agent services such as Coze.

Bytedance logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • ByteDance was reported on Thursday to be in early-stage development of proprietary central processing units and is evaluating both Arm and RISC-V architectures for those chips.
  • The company has approached external design firms and sought help securing foundry capacity as it does not appear to be building its own fabrication business.
  • Sources say the push is a response to rising CPU costs and stretched delivery times from major suppliers, with prices up roughly 10% to 35% quarter over quarter.
  • The planned chips are intended for deployment in ByteDance’s own servers and data centers to run inference and agent-style workloads that will support products such as Coze, and the company has not publicly commented.
  • The move follows a wider industry shift by cloud providers that design custom silicon to cut costs and tune performance for AI workloads and could reshape ByteDance’s supplier needs and capital plans for 2026.