ByteDance is in discussions with Shanghai-based GPU maker Iluvatar CoreX to purchase AI chips, according to multiple sources cited by Reuters. The potential deal would add another domestic supplier to ByteDance’s chip supply chain as it seeks to reduce reliance on Nvidia. One report says Iluvatar CoreX would become ByteDance’s third major domestic GPU supplier after Huawei and Cambricon if an agreement is reached. Iluvatar CoreX has reportedly sold nearly all of its output to government buyers until recently, and the current talks indicate interest from a major consumer of AI computing services. The sources characterize the discussions as preliminary and do not provide details on deal size, timing, or whether a final contract is expected. The reports also link the effort to ByteDance’s need for AI infrastructure for products such as TikTok and Douyin, where models and related workloads require large-scale compute. No official confirmation from ByteDance or Iluvatar CoreX is included in the accounts.