TikTok owner ByteDance plans to spend $12 bln on AI chips in 2025

22/1/2025 12:26

ByteDance is placing a big bet on artificial intelligence (AI) infrastructure as the TikTok parent plans to spend more than $12 billion on AI in 2025, the Financial Times reported on Tuesday, citing sources.



This move comes as the Chinese company faces pressure from Washington to sell its popular video-sharing app in the United States.



"The anonymously sourced information about our plan is incorrect," a ByteDance spokesperson said in response to the FT report.



ByteDance plans to spend 40 billion yuan to acquire AI chips in China in 2025, the report said, adding that the company will invest about $6.8 billion overseas to ramp up its foundation model training capabilities using advanced Nvidia chips.



Nvidia declined to comment on the report.



About 60% of ByteDance's domestic semiconductor orders would go to Chinese suppliers such as Huawei and Cambricon, while the rest would be spent on Nvidia chips that have been watered down to align with U.S. export controls, according to the report.