Shares of ILUVATAR COREX (HKEX: 09903) have risen more than 4%, following a midday surge exceeding 13%. At the time of reporting, the stock is up 4.17% to HK$549.5, with a turnover of HK$1.231 billion.

The movement follows market reports from June 15th citing informed sources indicating that ByteDance is in negotiations with ILUVATAR COREX to purchase AI chips for inference tasks. Concurrently, ByteDance is also reportedly considering a similar arrangement with Baidu.

Sources suggest that if an agreement is reached, ILUVATAR COREX would become a third major domestic GPU supplier. However, ByteDance, ILUVATAR COREX, and Baidu have not responded to media requests for comment on the matter.