ByteDance is collaborating with Broadcom to develop a 5-nanometer AI processor aimed at enhancing TikTok's algorithms.

The partnership aims to comply with US export restrictions and secure a stable chip supply, with manufacturing expected to take place at TSMC.

This development is critical for ByteDance's generative AI efforts and cost reduction, as Chinese firms face limited access to advanced AI chips.

US political pressure, including a new law mandating the sale of TikTok's regional operations, highlights ByteDance's strategic efforts to navigate these challenges and bolster its technological capabilities.