ByteDance, owner of TikTok, navigates U.S. restrictions by expanding its use of Nvidia GPUs through international cloud services, potentially spending $7 billion on access to these advanced processors next year. Despite U.S. sanctions blocking direct purchases of Nvidia GPUs in China, ByteDance can access them via data centers in other regions, such as the Middle East and Asia. The report, which ByteDance has denied, suggests a total AI infrastructure investment exceeding $20 billion. ByteDance is also developing proprietary AI chips with Broadcom to lessen its dependency on Nvidia, focusing on processors for training and inference, anticipated to be produced by TSMC by 2026.
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