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Sources: ByteDance close to deal with MediaTek on AI chips. Tech giant ByteDance, which among other things is behind the popular app TikTok, is in advanced talks with Taiwanese MediaTek about deliveries of specially developed AI chips to its data centers. Today 09:41 Bloomberg News reports this, citing sources. The deal would strengthen MediaTek's data center push and reduce its dependence on the mobile market. The company expects AI chip sales of about 2 billion dollars this year. ByteDance is simultaneously considering investments of up to 70 billion dollars this year to expand its AI infrastructure, with a possible increase to 100 billion dollars during 2027.

CapCut, Tencent and Kuaishou race to build AI tools for interactive film games. Published: October 11, 2026 Want to read in a language you're more familiar with? ByteDance's CapCut team, Tencent and Kuaishou are all rolling out AI tools for branching, playable stories. Costs are falling, but scripts, hit titles and distribution remain open problems. Several of China's biggest internet companies are building AI tools for interactive film games, a genre of branching, playable video stories, in a bid to own the creator entry point for what could become a mass-produced content format, according to a Chinese media report published on October 11. On September 20, ByteDance's video editor CapCut, in its China edition, unveiled ICG Studio, an AI interactive film game creation platform now in closed beta. Creators start from a story outline, then generate a script, persistent character, scene and prop assets, and storyboards. By chatting with an agent, they can branch the plot at any decision point and generate new storyboard shots, so characters and sets can be reused across storylines. Tencent has four products across different teams. TDream, billed as AI engines for playable cinematic worlds, turns scripts into video and adds branching choices. LightSpeed Studios launched a creation platform in May that breaks interactive story production into six standardized steps for non-professional users. Project Craft, an AI game creation platform shown at Tencent's SPARK 2026 event, generates 2D and 3D game prototypes from text. DreamNow is a showcase and discovery platform for AI videos, images and interactive titles. Kuaishou said in July that AI interactive content creation features were coming. Hits such as The Invisible Guardian and Love Is All Around showed there is an audience for the genre, but high production costs have kept the supply of quality titles thin. Developers interviewed say AI is already cutting costs. One game producer said character art that used to cost RMB 2,000 per image now costs about RMB 800 with AI assistance, and a RMB 200,000 small-game budget can fall to around RMB 150,000. Problems remain. Interactive scripts are far longer than short-drama scripts, and AI still cannot write them well. A hoped-for data flywheel, in which every player choice trains better plots, is unproven because the reasons behind a click are hard to attribute. The genre also lacks a dedicated distribution channel; most titles still sell as standalone games on platforms such as Steam, and whether AI-made titles will need a game publishing license is unclear. For now, the near-term opportunity looks strongest in tools for professional creators, which helps explain why the platforms are racing to offer them.

Arizona sues TikTok, alleging app was engineered to get kids addicted and hide the harms. A state is suing one of the world's biggest social media apps over allegations that it was built to get children and teens addicted while hiding the toll on their mental health. The lawsuit accuses TikTok and parent company ByteDance of using infinite scrolling, auto-play, push notifications and appearance-altering filters to keep minors on the app so the company can profit from their data, says Arizona Attorney General Kris Mayes. "TikTok touts its supposed safety measures to convince parents that this product is safe for young people. But behind the company's marketing is a platform engineered to exploit the vulnerabilities of developing brains, pushing Arizona kids toward compulsive use, harmful content, and dangerous behaviors while failing to protect them from adults who use the social media platform to groom or solicit minors. It's unconscionable." The complaint alleges TikTok downplayed or failed to disclose risks including depression, anxiety, disordered eating and self-harm. It also alleges the company knowingly allows children under 13 on the app despite publicly claiming to bar them. "The complaint further alleges that TikTok's recommendation algorithms expose minors to increasingly extreme, harmful, or age?inappropriate content and that TikTok's content?moderation practices are inadequate to block much of the dangerous material on the platform." The state alleges TikTok's 60-minute screen time limit for teens was known not to cut their use. A TikTok spokesperson denies the allegations, reports KJZZ. Says the spokesperson, "This lawsuit relies on misleading and inaccurate claims and deliberately ignores the concrete safety measures TikTok has voluntarily implemented to support the well-being of our community. We will vigorously defend against these claims." Follow The Daily Hodl on X, Facebook and Telegram Don't Miss a Beat - Subscribe to get email alerts delivered directly to your inbox Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney