Chinese tech firm ByteDance is in talks to buy AI processors for inference work from Shanghai-based Iluvatar ‌CoreX (9903.HK), and is also eyeing a similar deal with Baidu (9888.HK), two persons with knowledge of the subject said.

If an agreement is reached, Iluvatar CoreX would be ByteDance’s third major domestic GPU supplier after Huawei and Cambricon (688256.SS), the sources stated.

ByteDance, TikTok’s company, is also considering utilising Baidu’s (9888.HK) Kunlunxin chips, they said, declining to be named as the discussions are private. Tencent (0700.HK) is already a customer for Kunlunxin chips, one of the sources said.

ByteDance, Iluvatar CoreX, Baidu and Tencent did not respond to requests for comment.

The possible acquisitions reflect Chinese chipmakers’ efforts to build alternatives to foreign AI chips that are gaining pace as Beijing pushes the use of locally made chips to increase self-reliance amid U.S. export limits on sophisticated processors.

In April, Reuters reported that Chinese GPU and AI chip makers took about 41% of China’s AI accelerator server market last year, eating into Nvidia (NVDA.O)’s once-dominant position there in one of its most crucial overseas markets.

In the second half of this year, Chinese AI chips would be accessible in big quantities, while Nvidia’s market share in China has effectively gone to nothing, Tencent’s ​Chief Strategy Officer James Mitchell said in May.

The sources claimed Iluvatar CoreX, a top GPU startup in China, expects to sell at least 50,000 chips to ByteDance this year, with the most of them going to inference workloads as ByteDance adds customers to its flagship AI chatbot, Doubao.

Inference workloads are all about answering questions and they are different from AI model training that tends to use the most powerful CPUs.

Sources stated the terms of the possible deals are not final and could possibly alter.

BUSINESS MILESTONE

A partnership with ByteDance — one of China’s biggest digital businesses and a heavy spender on AI infrastructure — would mark a key commercial milestone for Iluvatar CoreX. The Shanghai-based company has largely supplied government procurement projects until now, said one of the sources.

Iluvatar CoreX, which debuted in Hong Kong in January, had sales of 1 billion yuan ($148 million) in 2025, almost 90% of which came from selling GPUs, as it benefited from increased demand for local AI gear.

Its Tiangai series chips are designed for AI training, and its Zhikai series is targeted at inference tasks, according to its website.

The research note said Huatai Securities estimated Iluvatar CoreX’s sales would reach 3.04 billion yuan ($449.8 million) this year, with total shipments soaring 139% to more than 100,000 chips. The average selling price for the Zhikai inference chips was 12,000 yuan, or around $1,775 each, said the trader.

Shares of Iluvatar Corex jumped 12% in Hong Kong after the Reuters report.

Iran coach Amir Ghalenoei said on Sunday political concerns and visa problems have hindered his side’s preparations for the World Cup but assured his players will not “pay attention to any of the hype”.

Iran have arrived at the tournament under the cloud of a nasty diplomatic spat, when the United States — at military odds with Iran for months — refused to give visas for several team support staff.

Their first match is against New Zealand in Los Angeles on Monday, the first time a World Cup host has hosted a country with which it is at war.

A small group of anti-regime protestors welcomed the Iran team bus, escorted by a police motorbike, at the training late Sunday.

Iranian diaspora members opposed to the conservative Iranian regime are planning far larger rallies outside the stadium and there have been concerns that the Iran squad could walk off the pitch if anti-government banners are shown.”We are here to play a terrific match, a contest of quality. “We don’t pay attention to any of the hype and anything that goes on around us,” Ghalenoei said in answer to a query from AFP at a press briefing.Of course, every team has its own challenges and in many countries numerous things are happening which have nothing to do with football.”

The coach claimed his players was merely in the World Cup to “represent the respectful people of Iran, be it the Iranians inside Iran or the Iranian diaspora”.“We are not political people… football is different from politics,” Ghalenoei stated.

The news conference came just an hour after the announcement of a peace accord between the US and Iran which brings to a “immediate and permanent” halt to military operations on all fronts.

The Iran team has sparked controversy, but it is far from the only political issue affecting the World Cup that the US is co-hosting with Mexico and Canada.

Many supporters including Somali referee Omar Artan were denied entry into the US for the World Cup.It’s not only Iran that has been affected, as you know,” stated star striker Mehdi Taremi.

“The tension surrounding the tournament… undermines that joy and undermines the message of FIFA or people, which is about football that brings about peace,” he said.“I have felt the tension since the first moment we came to this World Cup and whenever there is tension at any tournament, of course we do not have the same beautiful experience that we always talk about, about peace, joy for the people of every country.

Iran had intended to establish a training camp in the US, but decided at the last minute to switch to Tijuana in Mexico.

Ghalenoei said his team “didn’t have enough time to adjust… it will affect us, but God willing, I know that my players are very determined to do their utmost and show the highest quality”.“We were changed twice in our camp, first we were in the United States and then they transferred us to Mexico and of course that impacts us,” the coach stated.But Iranians are experts at turning adversity into opportunity.

Iran never has advanced past the first round of a World Cup. Belgium and Egypt are both in the same Group G.

Around 25 demonstrators outside the training session in Carson, near Los Angeles, chanted that the squad did not represent their people.“They are the terrorist regime in Iran,” said Satggin Jalali, 47, of Los Angeles.Some of us will be inside the stadium (tomorrow) We have several surprises for you.”“These guys are not for the Iranian people,” nodded Sourat Darabi, a 51-year-old doctor from Orange County.’We are here as the voice of the people of Iran because they don’t have a voice — (the government) cut the internet, and if they come out and protest, they kill them, they massacre.’

Pakistan has warmly welcomed the deal reached between the United States and Iran, Deputy Prime Minister Ishaq Dar said on Monday.

“We look forward to the formal signing ceremony on 19 June in Geneva and remain confident that this positive development will pave the way for lasting peace, stability and shared prosperity for the region and beyond,” he wrote in a post on X.

“Today’s significant breakthrough is a testament to the power of sustained diplomacy and the shared determination of our allies to choose dialogue over confrontation,” he said on X.

It also sends a reassuring message to the international community and brings much needed trust and stability to global markets and the world economy, especially for poor countries most vulnerable to regional instability.

Pakistan remains actively engaged with all interested parties and constantly urged caution and constructive engagement in this regard, reiterating that dialogue and diplomacy remain the only viable options for the resolution of any concerns.

“We appreciate the confidence that leaders in both the United States and Iran have placed in Pakistan and appreciate their willingness to remain engaged in seeking a peaceful and negotiated resolution.”

“We also thank the support and sincere diplomatic efforts of our brotherly countries including Saudi Arabia, Qatar, Turkey, Egypt and others, as well as the United Nations and our international partners who remained closely engaged throughout this process and helped realise this important milestone,” the post read.

As negotiations on unresolved issues continue, Pakistan is ready to support every effort to consolidate this progress.