ByteDance, the parent company of TikTok, reportedly plans to spend $7 billion on Nvidia AI chips in 2025. According to The Information, the move could position ByteDance as one of the largest owners of Nvidia chips globally, sidestepping U.S. restrictions aimed at limiting Chinese access to advanced AI hardware.
The U.S. introduced export restrictions on AI chips in 2022, tightening them further in subsequent years. These restrictions target companies in China, where ByteDance is headquartered. However, ByteDance appears to be using a workaround by storing the chips in data centers outside China, including Southeast Asia. This strategy technically complies with U.S. rules, as the chips are not directly brought into China.
ByteDance’s push for Nvidia chips ties into its ambitions in AI development. The company operates Doubao, a chatbot with 51 million active users, which has been described as one of China’s leading AI platforms, according to South China Morning Post. Access to Nvidia’s chips would likely bolster ByteDance’s capabilities in this space, keeping it competitive in the rapidly evolving AI sector.
This development highlights the challenges of enforcing tech export restrictions. As companies find creative ways to navigate the rules, questions remain about the effectiveness of such measures in limiting access to critical technology.
