TikTok owner ByteDance Eyes $12B AI Expansion Despite Regulatory Challenges
ByteDance is reportedly planning a $12 billion investment in AI chips by 2025, focusing on both domestic and overseas markets. The move aims to bolster its AI infrastructure amidst increasing U.S. pressure over TikTok’s ownership. However, ByteDance has denied the specifics of the report, calling it inaccurate.
TikTok parent ByteDance is ramping up its investment in artificial intelligence (AI) infrastructure, with plans to spend over $12 billion in 2025, the Financial Times reported on Tuesday, citing anonymous sources. The Chinese tech giant is expected to allocate 40 billion yuan ($5.50 billion) to acquire AI chips within China and an additional $6.8 billion for overseas investments, using advanced Nvidia chips to enhance its foundation model training capabilities.
ByteDance’s spokesperson, however, disputed the report, stating, “The anonymously sourced information about our plan is incorrect.” Nvidia declined to comment on the matter.
The report also highlights that 60% of ByteDance’s domestic semiconductor orders are projected to go to Chinese suppliers, including Huawei and Cambricon, while the remainder would be spent on Nvidia chips adjusted to comply with U.S. export restrictions. Beijing has reportedly advised Chinese tech companies to source at least 30% of their chips from local suppliers to support domestic industries.
The development comes as ByteDance faces mounting regulatory pressure from the United States to divest its ownership of TikTok, amid national security concerns over the app’s ties to China. On Monday, U.S. President Donald Trump signed an order delaying the ban on TikTok, which was originally set to take effect on January 19.
With ByteDance’s valuation reportedly hitting $300 billion, its ambitious plans for AI investment signal a push to strengthen its technological dominance, even as geopolitical tensions threaten to impact its global operations.