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ByteDance in talks to buy Chinese AI chip maker Iluvatar CoreX

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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.

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IHC forms larger bench to hear plea against PTI’s Sept 27 protest

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The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.

The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.

Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.

PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission

The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.

The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.

During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.

The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.

The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.

The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.

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Iran says it caught US underwater drone in Strait of Hormuz

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Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being ​used in military operations.

Iranian state media reported the craft was a Dive-LD, a ​large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) ⁠submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the ​inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one ​of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said ​in a statement broadcast by Iranian state media.

In response, a Pentagon spokesperson revealed a ​underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. ‌The ⁠defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.

Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it ​is built from the ​outset to operate ⁠in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.

The U.S. Navy is spending extensively in ​unmanned naval systems, including undersea and surface vehicles, as it seeks ​cheaper ways ⁠to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.

According to Anduril’s website, Dive-LD can operate for up to 10 days ⁠without returning ​to base and is meant to dive to depths ​of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop ​reported in 2024.

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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big

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The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the ‌defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.

Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.

Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.

The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.

The euro held constant at $1.1631 while the pound was last bought at $1.3546. ​The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.

OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.

The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.

The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.

The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.

Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”

The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.

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