ByteDance to Spend $20 Billion on AI in 2025

ByteDance, the Chinese owner of TikTok, plans to invest over 150 billion yuan ($20.64 billion) in capital expenditure this year, with a significant portion focused on artificial intelligence, Reuters reports. The company plans to allocate approximately half of this investment to AI-related infrastructure, including data centers and networking equipment, outside of China.

The main beneficiaries of this spending are expected to be Huawei Technologies, Cambricon Technologies, and Nvidia, sources familiar with the matter told Reuters. These sources requested anonymity due to the confidential nature of the information. ByteDance, however, refuted the reports to Reuters, stating that the information is incorrect without providing further details. Nvidia declined to comment, while Huawei and Cambricon did not immediately respond to requests for comment.

This substantial investment in AI will help ByteDance maintain its leading position in China's AI market. The company has rapidly expanded its AI offerings, currently boasting over 15 standalone AI applications, surpassing rivals such as Baidu and Tencent. Notable AI applications developed by ByteDance include the top chatbot, Doubao, which boasts 75 million monthly active users.

The investment will also support the expansion of ByteDance's AI offerings internationally, particularly at a time when the future of TikTok in the US remains uncertain. US President Joe Biden recently signed an executive order extending the deadline for the enforcement of a ban on TikTok by 75 days.

The planned $20 billion investment in AI represents a significant commitment from ByteDance. This figure surpasses the $12 billion for AI infrastructure reported by the Financial Times earlier this week and the up to $7 billion for accessing Nvidia chips outside China, as reported by The Information in December.

ByteDance's extensive investment in AI underscores its commitment to developing cutting-edge technology and expanding its global reach. It remains to be seen how the company's AI ambitions will evolve, particularly in light of the ongoing uncertainties surrounding TikTok's future in the US market.