Jan 21 (Reuters) - ByteDance is placing a big bet on
artificial intelligence (AI) infrastructure as the TikTok parent
plans to spend more than $12 billion on AI in 2025, the
Financial Times reported on Tuesday, citing sources.
This move comes as the Chinese company faces pressure from
Washington to sell its popular video-sharing app in the United
States.
"The anonymously sourced information about our plan is
incorrect," a ByteDance spokesperson said in response to the FT
report.
ByteDance plans to spend 40 billion yuan ($5.50 billion) to
acquire AI chips in China in 2025, the report said, adding that
the company will invest about $6.8 billion overseas to ramp up
its foundation model training capabilities using advanced Nvidia ( NVDA )
chips.
Nvidia ( NVDA ) declined to comment on the report.
About 60% of ByteDance's domestic semiconductor orders would
go to Chinese suppliers such as Huawei and Cambricon, while the
rest would be spent on Nvidia ( NVDA ) chips that have been watered down
to align with U.S. export controls, according to the report.
Beijing has given its tech companies informal guidance to
buy at least 30% of their chips from the country's own
suppliers, the report said.
TikTok, Huawei and Cambricon did not immediately respond to
Reuters' request for a comment.
U.S. President Donald Trump signed an order on Monday to
delay a ban on TikTok, which was originally scheduled to take
effect from Jan. 19.
($1 = 7.2712 Chinese yuan)