TikTok owner ByteDance plans massive AI investment

ByteDance faces US pressure while boosting AI investment in China and abroad.

Elon Musk confirmed he has no plans to buy TikTok, dismissing speculation about a potential acquisition.

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.