TikTok's parent company ByteDance is preparing for a major investment in artificial intelligence computing power, with plans to spend $7 billion on Nvidia chips in 2025, according to reports from The Information.
The Chinese tech giant aims to navigate around U.S. export restrictions by storing the chips in data centers outside of mainland China, particularly in Southeast Asian locations like Malaysia. This approach allows ByteDance to technically comply with U.S. regulations while still accessing Nvidia's powerful AI processors.
The planned investment would make ByteDance one of the world's largest users of Nvidia chips, despite ongoing U.S. efforts to limit Chinese companies' access to advanced AI hardware. The U.S. government has repeatedly tightened restrictions on AI chip exports to China since 2022.
ByteDance's strategy includes acquiring both specialized H20 AI chips - a modified version designed to meet U.S. export requirements - and high-end H100 and Blackwell processors for use in overseas facilities. The company plans to leverage this computing power to expand its AI capabilities, including supporting its popular Doubao chatbot, which currently serves 51 million active users in China.
The investment reflects ByteDance's broader push into artificial intelligence under founder Zhang Yiming's leadership. As TikTok's growth rate shows signs of slowing, the company is redirecting resources toward building advanced AI infrastructure and attracting top engineering talent from competitors.
This move comes as ByteDance develops its AI ecosystem both within China and internationally. The company already operates Doubao domestically and Cici AI in overseas markets, positioning itself as an emerging force in the global AI technology race.
The planned chip acquisition strategy highlights the complex dynamics between U.S. technology restrictions and Chinese companies' AI ambitions, as firms seek creative solutions to access critical computing resources while remaining within legal boundaries.