ByteDance is developing its own custom CPU to address its growing AI infrastructure demands, according to sources familiar with the matter. The move comes as the company faces soaring chip prices and long-term supply shortages, which are hindering its expansion plans. ByteDance aims to deploy these in-house CPUs in its servers and data centers to support internal operations and the rollout of agent-based products, including its Coze platform. The company is exploring two CPU architecture paths: one based on Arm architecture and another on the open-source RISC-V instruction set. This dual approach will help ByteDance determine the best fit for its long-term data center needs. Currently, ByteDance relies on CPUs from Intel and AMD, both of which have significantly increased prices recently, prompting the company to expedite its internal CPU development.