ByteDance Plans Massive $12B AI Chip Investment Amid US-China Tech Tensions

ByteDance Plans $12B AI Chip Investment Amid U.S. Restrictions, Company Denies Reports

  • Financial Times reports ByteDance plans $12 billion AI chip investment for 2025, though the company denies these claims.
  • $5.5 billion allocated for domestic Chinese manufacturers like Huawei and Cambricon, $6.8 billion for overseas infrastructure.
  • ByteDance’s AI chatbot Doubao maintains 60 million monthly active users in China.
  • Chinese tech firms face pressure to reduce dependence on NVIDIA chips amid U.S. export restrictions.
  • Company refutes claims about circumventing U.S. sanctions through Southeast Asian data centers.

ByteDance, the parent company of social media platform TikTok, reportedly plans to invest $12 billion in Artificial Intelligence chips next year, doubling its 2024 spending, according to a Financial Times report. The company has denied these claims, stating the “anonymously sourced information about our plan is incorrect.”

- Advertisement -

Domestic Manufacturing Push

The reported investment strategy allocates $5.5 billion for Chinese manufacturers, including Huawei and Cambricon. This aligns with Beijing’s directive for tech companies to reduce reliance on Nvidia AI processors, particularly as U.S. export restrictions limit access to advanced semiconductor technology.

AI Market Leadership

ByteDance’s AI chatbot Doubao has emerged as a market leader, recording over 60 million monthly active users. According to Yicai Global, Chinese AI application usage doubled in five months, as reported by QuestMobile’s research director Chen Yan.

Regulatory Compliance and Development

ByteDance has actively addressed multiple reports about its AI strategy. The company denied claims about circumventing U.S. sanctions through Southeast Asian data centers. Regarding semiconductor development, ByteDance clarified its chip projects remain in early stages, focusing primarily on advertising and recommendation system optimization while maintaining compliance with trade regulations.

The Information previously reported on potential sanction evasion strategies, which the company promptly denied. These developments occur as Chinese tech firms adapt to increasing regulatory pressures and trade restrictions affecting their AI capabilities.

- Advertisement -

✅ Follow BITNEWSBOT on Facebook, LinkedIn, X.com, and Google News for instant updates.

Consider a small donation to support our journalism

Previous Articles:

- Advertisement -

Latest News

Hyperscale hits 500k TPS, peaks over 700k in public test

Radix Hyperscale sustained 500,000 transactions per second (TPS) with peaks over 700,000 TPS during...

JPMorgan Projects Gold Skyrocketing to $8,000 by 2030

JP Morgan projects Gold (XAU/USD) could surge to $8,000 by 2030, a prediction following...

Crypto VC Inflows Hit $1.4B Through Early 2026

Institutional and venture capital commitments to crypto companies reached $1.4 billion at the start...

Brazil Sells $61B in US Treasuries, Buys Gold in 2026

Brazil sold $61 billion in U.S. Treasury securities in 2026, using the proceeds to...

U.S. Sanctions Crypto Exchanges Aiding Iran’s Regime

The U.S. Treasury Department has, for the first time, sanctioned entire cryptocurrency exchanges under...
- Advertisement -

Must Read

How to Check The Rarity of An NFT

Whenever you invest in an NFT collection, you might have noticed that some NFTs are more expensive than others. NFT collections are often made...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!