ByteDance plans to invest $12 billion on AI chips this year

['Shuang Jing', 'More Shuang Jing', '.Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow', 'Class', 'Wp-Block-Co-Authors-Plus', 'Display Inline', '.Wp-Block-Co-Authors-Plus-Avatar', 'Where Img', 'Height Auto Max-Width', 'Vertical-Align Bottom .Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow .Wp-Block-Co-Authors-Plus-Avatar'] TechNode 2025-01-22 00:00:00

Sources familiar with the matter revealed that ByteDance has allocated a budget of RMB 40 billion ($5.5 billion) to purchase AI chips in China by 2025, doubling its spending from last year. Additionally, the company plans to invest approximately $6.8 billion overseas, using NVIDIA chips to enhance its foundational model training capabilities. With TikTok facing restrictions in several countries, the company is turning to AI development and investment in its quest for new opportunities. In June 2024, ByteDance announced plans to invest MYR 10 billion ($2.1 billion) to establish an AI hub in Malaysia. At the same time, US-China trade tensions, particularly in the semiconductor sector, pose significant hurdles for ByteDance’s AI development.