ByteDance to Own Nvidia Chips Despite US Restrictions

According to a recent report, ByteDance, a popularly known Tiktok parent company, plans to purchase Nvidia chips in 2025. The news is about ByteDance skirting around to own Nvidia chips despite US restrictions on selling AI chips to China-based companies. 

ByteDance Plans to Buy Nvidia Chips

ByteDance, a Chinese internet technology company, has big plans for AI expansion. The company is looking forward to purchasing Nvidia chips. It has set a spending budget of $7 billion on the chips in 2025. 

US Restrictions on Selling AI Chips to Chinese Companies

The United States imposed export restrictions on certain AI chips and chipmaking tools in 2022. The US restriction on selling AI Chips limits certain countries to own AI chips. These countries include China. 

ByteDance is a Chinese internet technology company headquartered in Haidian, Beijing. ByteDance is restricted from purchasing Nvidia Chips as per the US AI chips export restriction policies. These restrictions have been tightened multiple times since then.

The US has suspended the licenses of dozens of US suppliers that sell chip-making materials and parts to China-based companies. These expanded restriction rules include selling only those AI chips that have fewer capabilities. 

ByteDance's Finds Loophole to have Nvidia Chips despite US Imposed Restrictions

ByteDance has forged a way out and is using a loophole to have Nvidia Chips despite the strict US restriction policies of selling AI chips and chipmaking tools to Chinese companies. To avoid violation of US restrictions, ByteDance isn’t bringing the chips directly to China but is storing them in data centers located in other regions, such as Southeast Asia.

ByteDance AI Expansion Mindset 

If ByteDance owns Nvidia chips, it will become one of the world’s top owners of Nvidia chips. ByteDance runs Doubao, China’s exclusive and most popular AI chatbot with 51 million active users, according to the South China Morning Post. ByteDance’s plans to own Nvidia chips indicate the company’s mindset of expanding its AI features and technology.