ByteDance, the Chinese tech giant that owns TikTok, has allocated more than 150 billion yuan ($20.64 billion) for capital expenditures this year, with a significant focus on artificial intelligence, according to two individuals familiar with the matter.
The sources added that approximately half of this budget is for overseas investments in AI-related infrastructure, including data centres and networking equipment.
The primary beneficiaries of ByteDance’s spending will include chipmakers HuaweiTechnologies and Cambricon Technologies, along with U.S. supplier Nvidia, according to the sources, who requested anonymity due to the confidentiality of the information.
ByteDance, Huawei, and Cambricon did not respond to requests for comment on Thursday, while Nvidia declined to comment.
This investment aims to strengthen ByteDance’s leadership in Artificial Intelligence within China. Although it started 2024 behind competitors, the company now offers over 15 standalone AI applications—more than rivals like Baidu and Tencent Holdings—including its leading chatbot, Doubao.
The funding will also bolster ByteDance’s AI capabilities internationally as the company navigates uncertainties surrounding TikTok’s future in the United States. On Monday, former U.S. President Donald Trump signed an executive order delaying the enforcement of a ban on the short video app by 75 days.
Since ByteDance is a privately held company that does not disclose its financial details, it remains unclear how the 2025 plan compares to previous years.
ByteDance has allocated $12 billion for Artificial Intelligence infrastructure. In December, The Information revealed plans for up to $7 billion to acquire Nvidia chips outside of China as the U.S. imposes restrictions on high-tech exports.
According to a September Reuters report, ByteDance has already become the largest purchaser of Nvidia’s H20 AI chips, which Nvidia specifically designed for China in response to export restrictions. Additionally, sources have told Reuters that ByteDance is Microsoft’s largest client in Asia for accessing Nvidia chips via cloud computing.
ByteDance’s AI applications in China include Doubao, which translates to “bean bag” and boasts 75 million monthly active users, according to QuestMobile data.
The company also offers a text-to-video generator called Jimeng, an image generator named Xinghui, Kouzi—a platform for creating custom chatbots—and Maoxiang, which provides role-playing and emotional support services.
Despite ByteDance’s investments, its spending remains relatively modest compared to U.S. tech giants. Last year, Alphabet, Google’s parent company, allocated $50 billion for chips, data centres, and other expenses. In comparison, Microsoft spent $55.7 billion in its fiscal year ending June 30, with a substantial share dedicated to AI infrastructure.
