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ByteDance appears to be skirting US restrictions to buy Nvidia chips: report
TikTok parent company ByteDance has big plans to purchase Nvidia chips in 2025, despite ongoing U.S. restrictions on the sale of such technology to Chinese companies like itself. According to a recent report from The Information, citing inside sources, ByteDance is set to spend $7 billion on Nvidia chips next year.
The U.S. government announced export restrictions on certain types of AI chips in 2022, specifically targeting countries including China where ByteDance is headquartered. These restrictions have been tightened multiple times since then. However, it appears that the company has found a loophole to circumvent these restrictions and acquire the Nvidia chips.
ByteDance is reportedly not bringing the chips directly into China, but instead, is storing them in data centers located in other regions, such as Southeast Asia. This technicality allows the company to avoid violating U.S. export restrictions.
As one of the largest and most influential tech companies globally, ByteDance’s plans to acquire Nvidia chips raise concerns about potential national security risks. The move could also have significant implications for the global AI industry and market dynamics.
ByteDance has been expanding its artificial intelligence capabilities in recent years, particularly with the launch of its popular AI-powered chatbot, Doubao, which boasts 51 million active users according to the South China Morning Post.
Source: techcrunch.com
