ByteDance, the owner of TikTok and a major Chinese AI player, is accelerating development of a next-generation in-house server CPU with a goal to finalize the design by early 2027 and begin mass production in the second half of that year to support its expanding AI infrastructure. This move comes amid rising chip prices and persistent supply shortages that have constrained the company's expansion plans, prompting ByteDance to deploy its proprietary processors in its own servers and data centers to gain greater control over its hardware stack. To speed up development and secure manufacturing capacity, ByteDance has partnered with Qualcomm on data center chips while also exploring cooperation with Chinese GPU suppliers and evaluating two architecture tracks based on Arm and the open-source RISC-V. The company has already tested an early version of the CPU in its internal data centers since late last year as it prepares for a massive rollout of agent-based AI products, including its Coze platform.