TikTok parent company ByteDance has big plans to purchase Nvidia chips in 2025 – despite US restrictions.
ByteDance is planning expenses $7 billion in 2025The Information reports, citing insider sources. If ByteDance follows through, it is going to turn into considered one of the world's largest owners of Nvidia chips, despite U.S. efforts to dam Chinese corporations from buying such U.S. AI chips.
In 2022, the US announced export restrictions on certain forms of AI chips to countries including China, where ByteDance is headquartered. These restrictions have occurred Since then it has turn into much tighter.
ByteDance technically adheres to those restrictions by exploiting a loophole: The company doesn't bring the chips on to China, but as an alternative stores them in data centers in other regions resembling Southeast Asia, The Information's reporting said. This doesn't technically violate US restrictions.
According to ByteDance, Doubao operates China's “hottest” AI chatbot with 51 million lively users South China Morning Post.
TechCrunch reached out to ByteDance for more information.