ByteDance Develops AI Model with Huawei Chips

Key hiGHLIGHTS

New AI Development: ByteDance is working on an AI model using Huawei chips, as reported by sources from Reuters.

Chip Shortage: The company has received fewer than 30,000 of the 100,000 Ascend 910B chips it ordered.

Less Powerful Model: This new AI model is expected to be less powerful than ByteDance’s existing model, Doubao.

Focus on Local Suppliers: In light of US trade sanctions on Nvidia processors, ByteDance is shifting to domestic suppliers.

AI technology is crucial in today's tech world, helping companies in e-commerce and gaming enhance their services through personalized AI models that improve decision-making. However, training these AI models is no easy feat; it requires a ton of data and powerful chips like Nvidia's high-end GPUs.

Unfortunately, last year, the US government banned Nvidia from selling its top AI processors to Chinese customers, aiming to limit China’s tech growth. In response to this, Beijing has been encouraging local companies to buy homegrown AI chips instead of relying on Nvidia, according to Bloomberg.

As a result, ByteDance, the parent company of TikTok, is pivoting to local manufacturers and advancing its own AI chip development. The company plans to use Huawei’s Ascend 910B chip for a new large language model while currently using it for less demanding tasks.

How Is ByteDance Using AI Right Now?

ByteDance’s existing AI technology powers its flagship large language model, Doubao, which was launched in August 2023. This technology is also behind various applications, including the text-to-video tool, Jimeng. In September, ByteDance introduced two new video-focused Doubao models to compete with OpenAI.

Since the start of the year, the popularity of these applications has skyrocketed. ByteDance’s chatbot has become one of the top apps in China, boasting over 10 million active users each month. This growing interest in AI has made ByteDance one of Huawei’s largest customers for AI chips.

Challenges in Developing ByteDance’s AI Model

However, there are challenges. Sources indicate that the new AI model will not perform as well as Doubao. ByteDance requested over 100,000 Ascend 910B chips this year but only received less than 30,000 by July. This shortage has made it difficult for the company to meet its needs. The limited availability and lower computing power of these chips, compared to Nvidia’s offerings, have delayed the new model’s development.

Overall, China is striving to catch up with U.S. AI computing power, but Huawei faces hurdles with software and production. The Ascend series chips fall short of Nvidia’s performance, and U.S. trade restrictions coupled with limited access to advanced manufacturing tools only add to these challenges.

Despite these obstacles, the demand for advanced AI chips in China continues to rise, leading to innovative solutions like Nvidia’s plan to create a custom AI chip specifically for the Chinese market.