ByteDance Eyes MediaTek Partnership to Bolster AI Data Center Infrastructure
TikTok parent ByteDance is nearing a deal with MediaTek for custom AI chips as it plans a massive $70 billion investment in data center infrastructure.
POLICY WIRE — Beijing, China — ByteDance is nearing a strategic agreement with MediaTek to procure specialized semiconductors for its expanding data center operations. The TikTok parent company is currently in advanced negotiations to secure custom-designed chips essential for powering its artificial intelligence infrastructure.
This potential partnership arrives as ByteDance looks to significantly scale its technological capabilities. The deal would provide the Taiwanese chipmaker with a major foothold in the sector, allowing it to compete more directly with industry rivals like Qualcomm Inc.
Financial projections indicate that ByteDance is planning a substantial increase in its infrastructure spending. After generating approximately $50 billion in profit during 2025, the company is considering capital expenditures of up to $70 billion for 2026, a sharp rise from the roughly $25 billion allocated in 2025.
The company’s hardware roadmap remains aggressive, with the AI200 chip slated for release later this year and the AI250 model expected to follow in 2027. Meanwhile, the broader semiconductor landscape continues to shift, with Nvidia Corp. having previously made a $3.5 billion investment in MediaTek, marking its largest direct outlay outside of the United States.
Reporting by Policy-Wire (PW)
