ByteDance May Spend $12 Billion on AI This Year

ByteDance, the parent company of TikTok, is reportedly planning to invest $12 billion in AI chips and model training capabilities this year.

According to the Financial Times, citing unnamed sources, ByteDance is making a significant bet on AI infrastructure amid pressures from U.S. regulations. Specifically, the company is expected to spend 40 billion yuan ($5.5 billion) on purchasing AI chips in China this year. Additionally, it will invest $6.8 billion overseas to enhance AI model training capabilities using Nvidia's advanced chips.

Photo: Reuters

Approximately 60% of ByteDance's AI chip orders will go to suppliers such as Huawei and Cambricon, while the rest will focus on Nvidia chips with reduced functionality.

A ByteDance spokesperson later stated the information was "inaccurate," while Nvidia, Huawei, and Cambricon declined to comment.

Earlier, the Financial Times reported that Chinese authorities have issued "unwritten guidance" requiring domestic tech companies to allocate at least 30% of their chip orders to local suppliers.

(Source: Reuters)