ByteDance is in advanced talks to purchase custom data-center chips from MediaTek, according to Bloomberg. The agreement would make the TikTok owner a major customer of MediaTek’s application-specific integrated circuit business, potentially its second-largest after Google.

The chips would support ByteDance’s data-center operations as the company expands its AI infrastructure. The volume under discussion has not been disclosed, and the agreement has yet to be finalized.

ByteDance is seeking additional chip suppliers as US export restrictions limit access to Nvidia’s most advanced AI processors. For MediaTek, the potential deal would expand its data-center business beyond its traditional strength in smartphone chips. [Bloomberg]