ByteDance, TikTok's parent company, appears to have found a solution to US chip export restrictions targeting China.
According to sources familiar with the matter who spoke to The Information, the company is planning to invest up to $7 billion in Nvidia AI chips through facilities outside of mainland China next year.
ByteDance co-founder Zhang Yiming is reportedly negotiating with data centers across Southeast Asia and other regions to secure access to Nvidia's upcoming Blackwell chips. In conversations with suppliers, Zhang has indicated that ByteDance's AI investment will surpass that of other Chinese tech giants.
This isn't ByteDance's first venture into offshore chip acquisition. The company already operates data centers outside China that use Nvidia's Hopper AI chips - hardware that US regulations explicitly prevent from being exported to mainland China.
The US government isn't standing still. Officials are currently developing new rules that would restrict both cloud leasing services in the United States and the sale of advanced AI chips to countries in Southeast Asia and the Middle East - a move that could complicate ByteDance's workaround strategy.
Bytedance's case is just another example of the ongoing cat-and-mouse game between US tech restrictions and Chinese companies' efforts to maintain access to cutting-edge AI hardware. As restrictions tighten, Chinese companies are showing remarkable adaptability in finding alternative ways to secure the technology they need.
Some Chinese companies have found ways to do more with less - AI startup Deepseek, for instance, has managed to train a GPT-4-level model for just $5.6 million total using Nvidia's downgraded H800 chips available in China.
