ByteDance Testing Arm and RISC-V CPUs for Internal AI Servers
INTC•ByteDance is developing its own CPU chips, testing two designs based on Arm and open-source RISC-V, to power internal servers and its Coze AI agent platform. This move aims to reduce costs and dependence on suppliers and could gradually erode Intel’s long-term server CPU demand.
1. ByteDance's In-House CPU Initiative
ByteDance has begun developing its own central processing units to support its expanding AI infrastructure, shifting key workloads from third-party suppliers to internal hardware. The initiative is driven by the need for greater control over chip specifications, pricing and delivery timelines as its AI demands grow.
2. Arm and RISC-V Designs Under Test
The company is currently evaluating two chip architectures: one based on licensed Arm cores and another leveraging the open-source RISC-V instruction set. These parallel development tracks allow ByteDance to compare performance, power efficiency and customization potential across different silicon designs.
3. Strategic Drivers and Benefits
Rising market prices and extended lead times for server CPUs have prompted ByteDance to seek vertical integration of its hardware stack. In-house chips promise lower per-unit costs, faster procurement and the ability to tailor features specifically for its Coze AI agent platform.
4. Impact on Intel's Server Demand
If ByteDance scales production of its custom CPUs, it could reduce future purchases of Intel’s Xeon processors for its data centers. Investors may view this trend as a risk to Intel’s market share in high-margin server CPU sales over the coming years.
