ByteDance’s Ambitious Plan for Nvidia Chips Amid U.S. Restrictions
ByteDance, the parent company of TikTok, is gearing up for a significant investment in Nvidia chips by 2025, with plans to spend a whopping $7 billion. This move comes despite ongoing U.S. restrictions aimed at limiting the purchase of American AI chips by Chinese companies. According to insights from The Information, ByteDance’s strategy could position it as one of the leading owners of Nvidia chips worldwide.
Since 2022, the U.S. has tightened export restrictions on specific AI chips to several countries, including China, where ByteDance is based. However, ByteDance is navigating these restrictions through a clever workaround: storing the purchased chips in data centers outside of China, such as those in Southeast Asia. This approach allows them to technically comply with U.S. regulations while still accessing the technology they need.
- Investment Plans: $7 billion on Nvidia chips by 2025.
- Strategic Loophole: Storing chips outside of China to adhere to U.S. restrictions.
- Main Product: Doubao, a popular AI chatbot with 51 million users.
This strategic move by ByteDance highlights their commitment to advancing AI capabilities despite geopolitical hurdles.
{The Information}
Doubao, ByteDance’s AI chatbot, continues to gain traction with 51 million active users, underlining the company’s strong foothold in AI technology in China. As this story unfolds, TechCrunch has reached out to ByteDance for further comments and insights into their ambitious plans.
