ByteDance, the parent company of TikTok, is reportedly planning a substantial $7 billion investment in Nvidia chips for 2025, aiming to become a major global holder of the advanced technology. This move comes despite ongoing U.S. restrictions on the export of AI chips to China.
This planned purchase would place ByteDance among the top owners of Nvidia chips worldwide. The company is navigating U.S. export restrictions by storing these chips in data centers outside of China, primarily in regions like Southeast Asia, thereby avoiding direct shipment to China, a move which appears to comply with current regulations.
The significant investment underscores ByteDance's ambitions in artificial intelligence. The company operates Doubao, a popular AI chatbot in China, which currently boasts 51 million active users. ByteDance has not yet released an official comment on this potential purchase, despite inquiries.
The situation highlights the complex interplay of global trade, technology, and national security policies. While U.S. regulations intend to limit China's access to advanced AI technology, companies are finding ways to operate within those boundaries, raising questions about the long-term effectiveness of such restrictions.
