ByteDance's Ambitious AI Investment Plan

In a bold move to strengthen its position in the tech industry, ByteDance, the owner of TikTok, is reportedly planning to invest more than $12 billion in artificial intelligence (AI) infrastructure by the year 2025. According to the Financial Times, this significant investment is aimed at enhancing the company's AI capabilities, particularly in the area of foundation model training.

Strategic Allocation of Funds

Of the total investment, $5.5 billion is earmarked for the purchase of AI chips within China, with the remaining $6.8 billion to be spent overseas. The overseas investment is specifically aimed at leveraging advanced Nvidia chips to bolster ByteDance's foundation model training capabilities. It's noteworthy that 60% of ByteDance's semiconductor orders are expected to go to Chinese suppliers Huawei and Cambricon, while the rest will be allocated to Nvidia chips, albeit modified to comply with U.S. export controls.

China's Push for Domestic Chip Usage

This move comes amidst Beijing's informal guidance to Chinese tech companies, urging them to source at least 30% of their chips from domestic suppliers. This strategy not only supports local industries but also aims to reduce dependency on foreign technology, especially in light of ongoing international trade tensions.