TikTok parent company ByteDance is reportedly set to purchase NVIDIA chips worth $7 billion in 2025, a move that could make the Chinese tech giant one of the largest global owners of these advanced AI chips. This acquisition is part of ByteDance's continued push into artificial intelligence and cutting-edge technology.
The deal comes despite the ongoing US-imposed restrictions that limit Chinese companies from obtaining American-made AI chips, particularly those produced by NVIDIA. In 2022, the United States implemented export controls on certain AI chips, targeting China to safeguard its technological advantage.
To circumvent these export restrictions, ByteDance plans to store the chips in data centres located in regions outside China, such as Southeast Asia, avoiding direct shipments to China. This strategy allows ByteDance to continue with its ambitious chip acquisition while staying within the bounds of US regulations.
ByteDance has already made strides in the AI space, notably with its Doubao AI chatbot, which has attracted over 51 million active users in China. The new chips are expected to power further advancements in ByteDance’s AI projects, although the exact use of the chips remains unclear.
ByteDance’s growing focus on AI, alongside its ability to navigate regulatory hurdles, demonstrates its determination to expand its influence in the global tech market. This move signals the company's intent to maintain a competitive edge, despite the challenges posed by international restrictions.
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