ByteDance, the Chinese tech giant behind TikTok, has allocated over 150 billion yuan ($20.64 billion) for capital expenditure this year, with a significant focus on AI, according to sources familiar with the matter. About half of the investment will support overseas AI infrastructure, including data centres and networking equipment. Beneficiaries of this spending are expected to include chipmakers Huawei, Cambricon, and US supplier Nvidia, although ByteDance has denied the accuracy of the claims.
The investment aims to solidify ByteDance’s AI leadership in China, where it has launched over 15 standalone AI applications, such as the popular chatbot Doubao, which boasts 75 million monthly active users. Its international counterparts include apps like Cici and Dreamina, reflecting ByteDance’s strategy to adapt its AI offerings globally. The company also recently updated its flagship AI model, Doubao, to rival reasoning models like those developed by Microsoft-backed OpenAI.
ByteDance’s international spending aligns with its efforts to expand AI capabilities abroad amid challenges like the uncertain future of TikTok in the United States. While ByteDance’s $20 billion plan is substantial, it remains modest compared to the AI investments of US tech giants like Google and Microsoft, which spent $50 billion and $55.7 billion respectively on AI infrastructure in the past year. The spending will also bolster ByteDance’s partnerships with suppliers such as Nvidia, from which it has procured custom AI chips tailored to China despite US export restrictions.
President Donald Trump unveiled a $500 billion private-sector initiative on Tuesday aimed at transforming AI infrastructure in the US. The joint venture, called Stargate, brings together OpenAI, SoftBank, and Oracle to build 20 massive data centres and create over 100,000 jobs. Backers have committed $100 billion for immediate deployment, with the remainder spread over the next four years.
The announcement, made at the White House with SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison in attendance, underscores America’s push to lead in AI development. Ellison revealed that the first data centres, each half a million square feet, are already under construction in Texas. These facilities aim to power advanced AI applications, including analysing electronic health records to assist doctors.
Trump attributed the project’s launch to his leadership, with executives expressing their support. “We wouldn’t have decided to do this unless you won,” Son said. However, the ambitious project arrives amid concerns over the rising energy demands of AI data centres. Trump promised to simplify energy production for these facilities, even as experts warn of potential power shortfalls across the country in the coming decade.
The announcement comes against a backdrop of surging AI investments since OpenAI’s release of ChatGPT in 2022, which sparked widespread adoption of AI across industries. Oracle and other tech stocks, including Nvidia and Dell, climbed on the news, reflecting market enthusiasm for the Stargate project.
ByteDance, the company behind TikTok, is reportedly planning a substantial $12 billion investment in AI infrastructure by 2025. According to the Financial Times, the funds will go towards acquiring advanced AI chips and enhancing model training capabilities, both domestically and abroad. A spokesperson for ByteDance refuted the accuracy of the report, calling the claims incorrect.
The company intends to allocate 40 billion yuan ($5.5 billion) towards purchasing AI chips in China, while an additional $6.8 billion will be spent overseas. Domestic semiconductor orders would largely go to Chinese suppliers, including Huawei and Cambricon, with the remainder focused on Nvidia chips modified to comply with US export restrictions.
China’s government has encouraged tech firms to source a significant percentage of their chips from local manufacturers. Meanwhile, ByteDance continues to navigate US scrutiny, with its popular app TikTok facing political pressure to be sold.
The news comes amid a broader global race for AI dominance, where investment in cutting-edge technology remains pivotal for competitive advantage.
U Mobile has secured financial backing from CIMB Bank to support its role as the country’s second 5G network provider. The two companies signed a Memorandum of Understanding (MoU) to facilitate the 5G rollout, with the partnership aligning with Malaysia’s digitalisation goals and aspirations for high-income status.
The Malaysian Communications and Multimedia Commission (MCMC) recently approved U Mobile as the second 5G provider, signalling a shift from a single-operator 5G model to a dual-network setup. That move follows the government’s decision to diversify network providers after Digital Nasional Berhad (DNB), initially the sole 5G operator, laid the foundation for 5G infrastructure in Malaysia.
U Mobile plans to establish 5,000 to 7,000 new 5G sites and enhance its existing 4G infrastructure to benefit enterprises, consumers, and the public sector. The company is also expected to collaborate with other operators to facilitate the rollout and expand 5G coverage across the country.
CIMB Bank has expressed its commitment to supporting digital innovation through 5G, underscoring the importance of such collaborations for advancing Malaysia’s technological infrastructure. That partnership is set to contribute significantly to Malaysia’s digital economy and its aspirations for a connected, high-tech future. By expanding 5G coverage and enhancing its network, U Mobile positions itself to play a key role in shaping Malaysia’s telecommunications landscape.
Vodafone Cook Islands and Rivada have partnered to enhance telecommunications connectivity and drive digital transformation across the Oceania region. The collaboration addresses the challenges posed by the geographic isolation of the Cook Islands and other territories in Oceania. By utilising Rivada’s next-generation low-Earth orbit (LEO) satellite constellation, the Outernet, Vodafone intends to offer scalable, resilient connectivity for enterprises and government clients.
The Outernet’s innovative design combines inter-satellite laser links and advanced onboard processing to provide gigabit-speed connectivity globally, bypassing public internet and third-party infrastructure. This optical mesh network ensures secure, fast, and low-latency connections, delivering urban-centre-quality connectivity to remote regions, including the Pacific islands.
In a time when geopolitical tensions threaten subsea cables in Asia, the partnership will create a more reliable and secure telecommunications infrastructure for the region. The benefits of this partnership are expected to be far-reaching, particularly for remote communities and the outer islands of the Cook Islands.
The enhanced connectivity will support critical sectors like online education, healthcare, and business, driving technological innovation and economic growth. Phillip Henderson, CEO of Vodafone Cook Islands, expressed his enthusiasm for the partnership, emphasising how the Outernet will empower remote communities, providing them access to previously challenging services.
The partnership is poised to transform connectivity in the region, helping to bridge the digital divide and foster long-term economic development.
The Japan Bank for International Cooperation (JBIC) has pledged up to €800 million to support the expansion of Germany’s 5G infrastructure, part of an effort to reduce reliance on Chinese technology. The project, which includes contributions from private banks across Europe and Japan, aims to build a secure and advanced telecom system for Germany.
The funding will support United Internet AG, a German telecom company, in adopting Open Radio Access Network (Open RAN) technology. This system allows seamless integration of equipment from multiple suppliers, reducing the risks of over-dependence on a single provider. A significant portion of the software involved is developed by Rakuten Group Inc., a Japanese tech firm.
Germany has relied heavily on Chinese manufacturers for 5G infrastructure, with 59% of its network sourced from Huawei and ZTE in 2022. This new initiative reflects Germany’s ambition to phase out Chinese components by 2029 and strengthen national security. JBIC’s €300 million contribution represents the largest share of the funding, ensuring stability and mitigating risks for the ambitious expansion.
As part of a broader collaboration, financial institutions from France, Britain, and Japan are also participating in the loans. Beyond enhancing Germany’s telecom security, the project is expected to benefit Japanese firms operating in the country by offering a trusted platform for handling sensitive data.
A decision to allocate satellite spectrum administratively rather than through an auction aims to increase competition in India’s vast telecom market. Telecoms Minister Jyotiraditya Scindia emphasised the government’s commitment to providing consumers with greater choice, despite concerns from Mukesh Ambani’s Reliance Jio over losing ground to Elon Musk’s Starlink. Reliance had pushed for auctions, arguing they ensure a level playing field after the company invested $19 billion in airwave rights.
Analysts suggest administrative allocation aligns with global norms and reduces investment barriers for foreign companies. Scindia noted that current satellite technology is limited to outdoor use, which distinguishes it from indoor services offered by terrestrial networks. Applications from Starlink and Amazon Kuiper to enter India’s satellite broadband market, projected to reach $1.9 billion by 2030, are under review.
India’s competitive telecom sector, with 942 million users and low data costs, is attracting significant global interest. Bharat Sanchar Nigam Limited (BSNL), a state-run operator with 99 million users, is expanding its 4G offerings to regain market share. Meanwhile, the government remains tight-lipped about plans to assist Vodafone Idea, which faces $24 billion in dues.
Musk’s disruptive approach, evident in markets like Kenya where Starlink’s pricing undercut local rivals, signals potential shifts in India’s broadband landscape. The new satellite policy could bring more innovation, fostering a dynamic environment for global and domestic players.
Samsung and LG Electronics may shift some home appliance production from Mexico to the United States, according to a South Korean news report. The potential move follows former President Donald Trump’s announcement of possible 25% tariffs on imports from Canada and Mexico, set to take effect on February 1.
Samsung is reportedly considering relocating dryer production to its South Carolina plant, while LG may move refrigerator production to its Tennessee factory, which already produces washing machines and dryers. Both companies are evaluating their operations as they adapt to market changes and trade policies.
In statements, Samsung emphasised its flexible global production strategy, while LG highlighted its commitment to adjusting production systems to meet market demands. These considerations reflect broader shifts in manufacturing strategies due to trade uncertainties.
Spain’s government has announced a new initiative to promote the adoption of AI technologies across the country’s businesses. Prime Minister Pedro Sanchez revealed on Monday that the government will provide an additional 150 million euros ($155 million) in subsidies aimed at supporting companies in their efforts to integrate AI into their operations.
The funding is designed to help businesses harness the potential of AI, which has become a critical driver of innovation and efficiency in various sectors, from manufacturing to healthcare and finance. The subsidies will be available to companies looking to develop or adopt AI-based solutions, to foster digital transformation and maintain Spain’s competitive edge in the global economy.
Sanchez emphasised that the funding will play a vital role in ensuring Spain remains at the forefront of the digital revolution, helping to build a robust, AI-powered economy. The move comes as part of Spain’s broader strategy to invest in technology and innovation, aiming to enhance productivity and create new opportunities for growth in both the public and private sectors.
The European Commission has filed a complaint with the World Trade Organization (WTO) against China, accusing the country of ‘unfair and illegal’ practices regarding worldwide royalty rates for European standard essential patents (SEPs). According to the Commission, China has empowered its courts to set global royalty rates for the EU companies, particularly in the telecoms sector, without the consent of the patent holders.
The case focuses on SEPs, which are crucial for technologies like 5G, used in mobile phones. European companies such as Nokia and Ericsson hold many of these patents. The Commission claims that China’s actions force European companies to reduce their royalty rates globally, providing Chinese manufacturers with unfairly low access to European technologies.
The European Union has requested consultations with China, marking the first step in WTO dispute resolution. If a resolution is not reached within 60 days, the EU can request the formation of an adjudicating panel, which typically takes about a year to issue a final report. This case is linked to a previous EU dispute at the WTO concerning China’s anti-suit injunctions, which restrict telecom patent holders’ ability to enforce intellectual property rights in courts outside China.
