For 2025 ByteDance plans to invest 150 billion yuan ($20.64 billion) and will put 50% of these funds into building AI infrastructure outside of China. ByteDance uses its money to strengthen its data centres, buy networking gear, and secure technological collaboration partners.
Chinese chipmakers Huawei Technologies and Cambricon Technologies partner with U.S. chip maker Nvidia to receive half of ByteDance’s 150 billion yuan ($20.64 billion) expenses. ByteDance puts its money into artificial intelligence to build better market share both at home and abroad.
Since launching its AI initiatives at the start of 2024 ByteDance has grown from a late starter to now offer 15 separate AI applications. 60 million Doubao users and new text-to-video Jimeng connect to image generator Xinghuo from ByteDance AI platform’s core components.
ByteDance makes this investment at a sensitive time as the company navigates challenges with TikTok in the US market. President Trump’s latest move gave ByteDance 75 days to develop its worldwide business planning after delaying its TikTok ban.
ByteDance leads all other customers when purchasing H20 AI chips from Nvidia that were built for the Chinese market. The organization launches universal versions of their AI products globally including Cici and Dreaming besides their main Chinese products Doubao and Jimeng.
Doubao AI model updates prove ByteDance wants to compete with Microsoft-backed OpenAI and match its reasoning computer operations.
As reported by the Financial Times and The Information ByteDance continues to deny exact spending amounts yet they make substantial AI infrastructure and chip purchases.