TikTok's Chinese parent ByteDance plans to develop an AI model trained primarily with chips from compatriot Huawei Technologies (HWT.UL), said three people familiar with the matter, as U.S. curbs turn the social media giant homeward in search of chips.

ByteDance is reportedly preparing to develop a new artificial intelligence model using Huawei chips, as U.S. trade restrictions push the Chinese tech giant to seek domestic alternatives. According to three sources familiar with the matter,

Previously, ByteDance’s AI projects used NVIDIA’s H20 AI chips, which were designed for the Chinese market and avoided the trade restrictions the US government placed in 2022. Chinese customers were only allowed to purchase select models of AI chips, which was an attempt to slow down Chinese technological advancement.