ByteDance appears to be skirting US restrictions to buy Nvidia chips: Report | TechCrunch
Dec 30, 2024 - techcrunch.com
ByteDance, the parent company of TikTok, plans to purchase $7 billion worth of Nvidia chips in 2025, despite U.S. restrictions on selling certain AI chips to China. According to The Information, ByteDance is navigating these restrictions by storing the chips in data centers outside of China, such as in Southeast Asia, which technically complies with U.S. regulations. This move could position ByteDance as one of the largest owners of Nvidia chips globally, even as the U.S. continues to tighten export restrictions on AI technology to Chinese companies.
ByteDance operates Doubao, a popular AI chatbot in China with 51 million active users. The company's strategic acquisition of Nvidia chips highlights its commitment to advancing its AI capabilities, despite geopolitical challenges. TechCrunch has reached out to ByteDance for further details on their plans and strategies regarding the chip purchases and their compliance with international regulations.
Key takeaways:
ByteDance plans to spend $7 billion on Nvidia chips in 2025, despite U.S. restrictions.
ByteDance will become one of the world’s top owners of Nvidia chips if the purchase goes through.
The company is using a loophole by storing the chips in data centers outside China to adhere to U.S. restrictions.
ByteDance operates Doubao, a popular AI chatbot in China with 51 million active users.
