Tiktok’s parent company, ByteDance, may be planning to spend more than $12 billion on AI chips in 2025, the Financial Times reported Wednesday.
The move would effectively double its investment from last year, even as its flagship app navigates choppy political waters in the U.S.
Chinese tech companies face mounting pressure from Beijing to boost their local industries and reduce their dependency on Nvidia AI cards, especially as U.S. sanctions prevent the companies from exporting their best chips to the nation.
ByteDance is reportedly investing heavily in AI, with $5.5 billion of its $12 billion budget allocated for domestic chip purchases from manufacturers such as Huawei and Cambricon, per to the report.
The remaining $6.8 billion would be marked for overseas AI infrastructure, though this chunk faces some serious roadblocks.
Despite U.S. sanctions against the Chinese AI industry, domestic production and development are becoming more dominant.
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Author: Jose Antonio Lanz
