ByteDance is in advanced negotiations with Shanghai GPU startup Tianshu Zhixin to purchase at least 50,000 AI chips, according to Reuters. The chips, primarily intended for inference workloads, would support the rapid user growth of ByteDance's AI agent product Doubao. If the deal goes through, Tianshu Zhixin would become ByteDance's third domestic GPU supplier, after Huawei and Cambricon.
ByteDance is also evaluating Baidu's Kunlun chips — Tencent is already a customer there. The push toward domestic suppliers is largely driven by US export controls on advanced semiconductors, which have accelerated homegrown chip development. Chinese GPU and AI chip makers now control nearly 41% of the country's AI accelerator server market, while Nvidia's once-dominant share has dwindled to near zero.
Tianshu Zhixin, a general-purpose GPU company that listed on the Hong Kong Stock Exchange in January 2026, has historically sold primarily to government projects. Its 2025 revenue was 1 billion RMB ($138 million), with GPU sales accounting for about 90% of that. Huatai Securities projects 2026 revenue of 3.04 billion RMB, with chip shipments growing 139% to over 100,000 units. The company's Zhikai inference chip carries an estimated average selling price of 12,000 RMB ($1,660).