TikTok’s parent company, ByteDance, reportedly plans to invest $7 billion in Nvidia chips by 2025, positioning itself among the top global owners of these AI chips. This move comes despite stringent U.S. restrictions aimed at limiting Chinese access to advanced American AI technology.
The U.S. imposed export controls on specific AI chips to nations including China, where ByteDance is based, in 2022. These measures have been tightened over time. However, ByteDance appears to navigate these restrictions through a legal workaround. Instead of importing the chips directly into China, the company stores them in data centers located in regions like Southeast Asia, a strategy that aligns with the letter of U.S. regulations without breaching them.
ByteDance’s acquisition of Nvidia chips is linked to its AI advancements, including the operation of Doubao, a popular AI chatbot in China boasting 51 million active users, as reported by the South China Morning Post.
This development underscores the challenges in enforcing technological restrictions and highlights ByteDance’s determination to remain at the forefront of AI innovation despite geopolitical hurdles.
