May 26 (Reuters) – Qualcomm reached a deal with TikTok owner ByteDance to supply chips for AI data centers, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Shares of the smartphone chip designer rose about 5%.
ByteDance is set to procure millions of Qualcomm chips known as application-specific integrated circuits to help support the social media company’s AI agent software, according the report.
The Chinese tech giant is poised to become one of Qualcomm’s first major customers for the AI-focused application-specific integrated circuits (ASICs), marking a key win for the chip company trying to expand from smartphone processors into AI infrastructure, the report said.
Qualcomm and ByteDance did not immediately respond to requests for comment. Reuters could not independently verify the report.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)