Chinese tech giant ByteDance is developing an artificial intelligence processor similar to that of Nvidia partner Groq, The Information reports. The chip, which is still in the early stages of development, can run artificial intelligence models at low cost, the news outlet reported, citing three people familiar with the matter. The news outlet also added that the company is working with China Innovation Technology Co., Ltd. (InnoStar Semiconductor) to integrate its memory technology into the new chip.

In addition, ByteDance is also developing different chips for video algorithms, and other media reports have also suggested that ByteDance is developing CPU chips for inference.

Seeking Alpha reached out to ByteDance for comment but did not immediately respond.

In December 2025, Nvidia acquired most of Groq's intellectual property for $20 billion and hired many of its employees. In March this year, Nvidia released a language processing unit based on Groq technology at its annual GTC developer conference.