Defying US export restrictions to boost its AI capabilities amid growing geopolitical tensions, TikTok owner ByteDance plans to invest $7 billion in Nvidia’s AI chips by 2025.
Chinese tech-giant ByteDance, the parent company of TikTok, has reportedly announced plans to invest $7 billion in Nvidia’s advanced AI chips by 2025. This move is aimed at enhancing the company’s artificial intelligence capabilities, despite ongoing US restrictions on the export of high-performance semiconductor technology to China.
According to a report by The Information, ByteDance intends to become one of the world’s largest consumers of Nvidia’s chips, marking a shift in its strategy amid geopolitical tensions in the global AI race.
The investment plan, led by ByteDance co-founder Zhang Yiming, comes at a time when Chinese companies, including ByteDance, have faced increasing challenges due to US-imposed measures restricting access to advanced AI hardware.
Despite these limitations, reports suggest that Chinese firms have found ways to acquire these chips through channels outside China, either by establishing new entities or training AI models abroad to bypass export controls.
The move also follows the recent tightening of US export controls on semiconductor technology, a strategy aimed at curbing China’s technological advancements, particularly in AI and military applications.
In response, Chinese industry associations have advised domestic firms to approach purchases of US-made chips with caution, citing concerns over reliability and security. This development could significantly impact American chip manufacturers like Nvidia, AMD, and Intel, which continue to operate in China despite the restrictions.
