ByteDance appears to be skirting US restrictions to buy Nvidia chips: Report

ByteDance plans $7B on Nvidia chips by 2025, skirting US restrictions via data centers outside China.

: ByteDance plans to spend $7 billion on Nvidia chips in 2025, despite U.S. restrictions against Chinese firms purchasing such AI chips. The company uses a loophole by storing the chips in data centers outside China, which doesn't technically violate U.S. export limits. This move places ByteDance among the top global Nvidia chip owners. Notably, the company runs Doubao, a leading AI chatbot with 51 million users.

ByteDance, the parent company of TikTok, intends to invest $7 billion in Nvidia chips by 2025. This move occurs despite U.S. government restrictions designed to limit Chinese access to U.S. AI technology, notably tightened since 2022.

The company is reportedly leveraging a loophole, through reportedly storing these chips in data centers in regions like Southeast Asia rather than bringing them into China. This strategic move bypasses direct contravention of U.S. restrictive measures.

This maneuver could elevate ByteDance to one of the largest holders of Nvidia chips worldwide. The company also manages Doubao, China's leading AI chatbot, boasting 51 million active users, emphasizing its role in the AI sector.

ByteDanceNvidiaAI technology