Investing.com -- ByteDance, the parent company of TikTok, plans to invest over $12 billion in artificial intelligence (AI) infrastructure by 2025, according to the Financial Times. This strategic move comes amidst pressure from Washington for the Chinese firm to sell its popular video-sharing app in the United States.
ByteDance disputed the information, with a spokesperson stating that the anonymously sourced details about their plan were incorrect. The report also suggested that the company intends to spend 40 billion yuan ($5.50 billion) on acquiring AI chips in China by 2025.
In addition, ByteDance is expected to invest approximately $6.8 billion overseas to enhance its foundation model training capabilities using advanced Nvidia (NASDAQ:NVDA) chips.
The report further indicates that about 60% of ByteDance's domestic semiconductor orders would be allocated to Chinese suppliers such as Huawei and Cambricon. The remaining orders would be spent on Nvidia chips that have been modified to comply with U.S. export controls.
In accordance with informal guidance from Beijing, tech companies have been advised to purchase at least 30% of their chips from domestic suppliers.
In a recent development, U.S. President Donald Trump signed an order on Monday to postpone a ban on TikTok, which was initially scheduled to commence from Jan. 19. This order has provided a temporary reprieve for the video-sharing app in the U.S. market.
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