ByteDance, the owner of TikTok, plans to invest over $12 billion in AI chips in 2025, primarily focusing on bolstering its AI infrastructure and foundation model training capabilities. This significant investment will involve acquiring both Chinese and (watered-down) Nvidia chips, reflecting Beijing's push for domestic chip suppliers and ongoing US export control restrictions. The move comes as ByteDance faces pressure in its core social media business and intense competition from other Chinese tech giants in the AI market. The company's large-scale AI chip purchases aim to solidify its position as a leader in China's AI race, despite potential challenges posed by US regulations.

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