ByteDance Bets Big: A $12 Billion AI Infrastructure Investment

ByteDance, the company behind TikTok, is set to significantly invest in AI infrastructure with plans to spend over $12 billion by 2025. Facing U.S. pressures, the company is focusing on acquiring AI chips in China and training models overseas, emphasizing partnerships with Chinese suppliers like Huawei.

ByteDance, the parent company of TikTok, is preparing to make a substantial investment in artificial intelligence infrastructure, with plans to allocate over $12 billion by 2025. This strategic move comes amid ongoing pressure from Washington to divest its popular video-sharing platform in the U.S.

According to sources, ByteDance intends to spend 40 billion yuan ($5.50 billion) on AI chips within China, with an additional investment of approximately $6.8 billion overseas to enhance its foundation model training capabilities utilizing advanced Nvidia chips. Nvidia has not commented on the report.

The company plans to source approximately 60% of its domestic semiconductor orders from Chinese suppliers such as Huawei and Cambricon, complying with Beijing's informal directive for tech companies to purchase at least 30% of their chips from local suppliers.

(With inputs from agencies.)