In 2025, ByteDance plans to invest over $12 billion in artificial intelligence infrastructure, focusing on AI chip purchases and foundational model training.

Approximately half of this budget will be allocated internationally for AI-related infrastructure, including data centers and networking equipment.

Key beneficiaries of this investment are expected to include Chinese chipmakers Huawei Technologies and Cambricon Technologies, as well as U.S. supplier Nvidia.

The funding aims to bolster ByteDance's AI capabilities internationally amid ongoing challenges regarding TikTok's future in the U.S.

This investment reflects a broader trend among Chinese tech companies to strengthen domestic capabilities and reduce dependence on Western suppliers.

ByteDance intends to direct approximately 60% of its semiconductor orders to local suppliers, including Huawei and Cambricon.

ByteDance has become the largest buyer of Nvidia chips in Asia, surpassing rivals such as Alibaba and Baidu.

The investment is partly driven by pressure from the U.S. government regarding the ownership of TikTok, which is owned by ByteDance.

In August 2023, ByteDance launched its AI chatbot Doubao, which gained 71 million monthly active users, although this is less than OpenAI's 300 million weekly users.

A ByteDance spokesperson has disputed the accuracy of reports regarding their investment plans, labeling the information as incorrect.

In September 2024, the U.S. imposed a tariff hike on all Chinese chip imports, complicating the landscape for ByteDance's semiconductor sourcing.

Despite U.S. sanctions, ByteDance's AI chatbot, Doubao, has captured a substantial share of the AI chatbot market in China.