New updates have been reported about ByteDance (PC:BYTDC)
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ByteDance, the parent company of TikTok, is planning a significant investment in Nvidia chips, with a projected expenditure of $7 billion in 2025. This move positions ByteDance as a major player in the global AI chip market, despite ongoing U.S. export restrictions targeting Chinese companies. These restrictions, which began in 2022, have been progressively tightened, aiming to limit China’s access to advanced U.S. AI technology. However, ByteDance has navigated these constraints by storing the chips in data centers outside China, such as in Southeast Asia, effectively adhering to the letter of U.S. regulations without directly importing the chips into China.
ByteDance’s strategic acquisition of Nvidia chips is crucial for supporting its AI-driven initiatives, including Doubao, a leading AI chatbot in China with 51 million active users. The company’s decision underscores its commitment to advancing its technological capabilities while complying with international trade laws. ByteDance has clarified that it has not purchased Nvidia’s H100 chips for its data centers outside the U.S. since the implementation of the latest export controls. This development highlights ByteDance’s proactive approach in maintaining its competitive edge in AI technology, while also navigating complex geopolitical landscapes. The company’s actions could have significant implications for its growth strategy and its position in the global tech ecosystem.