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ByteDance denies $12B AI chip investment amid US tensions

ByteDance denies $12B AI chip investment amid US tensions

GrafaGrafa2025/01/23 08:50
By:Isaac Francis

ByteDance, the parent company of TikTok, is reportedly planning an investment of over $12 billion in AI chips for 2025, according to the Financial Times.

This figure would represent a significant increase from the previous year, underlining the company's strong commitment to advancing its AI capabilities amidst ongoing political challenges in the U.S.

The report suggests that approximately $5.5 billion of the total budget will be allocated for purchasing domestic chips from manufacturers like Huawei and Cambricon, while the remaining $6.8 billion will be earmarked for overseas AI infrastructure.

However, the company may encounter significant obstacles due to U.S. sanctions that limit access to advanced technologies.

Chinese tech companies, including ByteDance, are under increasing pressure from the Chinese government to strengthen local industries and reduce reliance on U.S.-made components like those from Nvidia, particularly as U.S. restrictions on high-tech products continue to grow.

ByteDance’s AI chatbot, Doubao, has seen considerable success, with over 60 million monthly active users, reflecting the growing interest in AI technologies in China.

However, ByteDance has denied the specifics of the Financial Times report, claiming the details about the budget and investments were inaccurate.

The company emphasised that its AI efforts are still in early stages, primarily focusing on optimising ad and recommendation systems, and that it has no plans to circumvent U.S. sanctions.

Despite the company's denials, these reported plans signal ByteDance's strategic focus on AI development as it faces increasing scrutiny and regulatory challenges, particularly in the U.S., where TikTok continues to be under investigation and is potentially at risk of a ban.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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