ByteDance, the parent of TikTok and one of China's largest AI compute consumers, is in active discussions to procure AI chips from Iluvatar CoreX, a Shanghai-based GPU designer focused on cloud and inference workloads, according to sources. The move underscores how US export controls on advanced Nvidia H100/H800 and AMD MI300X chips are actively reshaping Chinese hyperscaler procurement toward domestic alternatives, compressing the addressable market Western chipmakers once counted on.

The second-order setup is a continued bifurcation of the global AI chip market: domestic Chinese players like Iluvatar, Cambricon, and Huawei Ascend absorb demand that Nvidia can no longer legally serve, while Nvidia's China revenue — already estimated to have fallen sharply post-restriction — faces further structural erosion. Watch for any Nvidia or AMD commentary on China revenue trajectory in upcoming earnings, and any follow-on reports of scale and pricing in the ByteDance-Iluvatar deal.