Chinese technology companies ByteDance and Alibaba are planning to place orders for Huawei's newest artificial intelligence chip, according to sources familiar with the matter.

The development suggests that Huawei's latest AI semiconductor offering has gained traction among major Chinese tech firms. ByteDance, the parent company of TikTok, and e-commerce giant Alibaba are among the companies showing interest in the new chip technology.

The reported interest from these major companies could signal growing domestic demand for Huawei's semiconductor products as Chinese firms seek alternatives amid ongoing technology trade restrictions. Both ByteDance and Alibaba are significant players in China's technology sector, with substantial computing and AI infrastructure needs.

Huawei has been working to develop its semiconductor capabilities following restrictions on its access to advanced chips from international suppliers. The company's progress in AI chip development represents part of broader efforts by Chinese technology firms to build domestic alternatives to foreign technology.

The specific technical specifications and timeline for potential orders were not disclosed by the sources. Neither ByteDance, Alibaba, nor Huawei immediately responded to requests for comment regarding the reported plans.