ByteDance reportedly looking to invest $12bn globally into AI infrastructure

Will reduce reliance on Western chip suppliers

The investment highlights ByteDance focus on AI amid ongoing geopolitical tensions and ever-present regulatory scrutiny.

ByteDance, the parent company of TikTok, is reportedly gearing up for an ambitious push into AI infrastructure, planning to invest over $12 billion globally in 2025. This significant move highlights the company’s focus on AI amid ongoing geopolitical tensions and regulatory scrutiny.

According to the Financial Times, ByteDance aims to spend 40 billion yuan (£4.4 billion) on acquiring AI chips within China and an additional £5.5 billion on bolstering its AI model training overseas. The report also suggests ByteDance will rely heavily on advanced Nvidia chips, despite US export controls mandating a downgraded version for Chinese buyers.

Approximately 60% of ByteDance’s domestic chip orders will reportedly be placed with Chinese suppliers, including Huawei and Cambricon, aligning with Beijing's informal guidance for tech firms to source at least 30% of their semiconductors from local companies.

ByteDance has publicly denied the accuracy of the reported investment plans, with a spokesperson calling the information “incorrect.” Nvidia, Huawei, Cambricon, and TikTok declined to comment on the matter.

This potential investment comes as ByteDance faces mounting pressure from US regulators to divest TikTok over national security concerns. While ByteDance has weathered scrutiny in the past (and President Trump has now extended the deadline for TikTok to find a new purchaser), such substantial investment in AI underscores its broader ambition to strengthen its technological autonomy and competitiveness on the global stage.

The reported plans also reflect the broader trend of Chinese tech giants responding to geopolitical challenges by building domestic capabilities and reducing reliance on Western suppliers.