Report: ByteDance sets aside about $20B for AI spending this year - SiliconANGLE
Jan 24, 2025 - siliconangle.com
ByteDance Ltd., the parent company of TikTok, has allocated approximately $20.64 billion for capital expenditure this year, with a significant portion dedicated to enhancing its artificial intelligence capabilities. According to Reuters, about half of this budget will be used for AI-related infrastructure outside China, including data center resources and networking equipment. Key beneficiaries of this spending include Nvidia Corp., Cambricon Technologies Co. Ltd., and Huawei Technologies Co. Ltd. ByteDance is reportedly renting GPUs from data centers outside mainland China due to U.S. restrictions on purchasing advanced AI accelerators. The company is also a major customer of Microsoft Corp. for cloud computing resources in Asia, aiming to maintain its market lead over competitors like Baidu Inc. and Tencent Holdings Ltd. with its suite of AI applications.
Despite ByteDance's substantial investment in AI, it is still less than the budgets of some American firms, such as Google LLC and Microsoft, which have set aside $50 billion and $80 billion, respectively, for AI infrastructure. ByteDance's AI applications include Duobao, a chatbot similar to ChatGPT, and other tools like Jimeng and Xinghui. Some of these apps are available internationally under different names. Additionally, ByteDance is in ongoing negotiations with U.S. authorities regarding the future of TikTok in the U.S., following a temporary delay in the enforcement of a ban on U.S. infrastructure providers working with the company.
Key takeaways:
ByteDance has allocated approximately $20.64 billion for AI-related capital expenditure this year, focusing on infrastructure outside China.
The main beneficiaries of ByteDance's AI spending include Nvidia, Cambricon Technologies, and Huawei Technologies.
ByteDance is renting GPUs from data centers outside mainland China due to U.S. restrictions on purchasing advanced AI accelerators.
Despite significant AI investment, ByteDance's budget is still smaller compared to American firms like Google and Microsoft.
