ByteDance, the parent company of TikTok, is reportedly planning to spend 100 billion yuan, or around $14 billion, on Nvidia’s H200 AI GPUs in 2026, adding to its existing stockpile of Nvidia chips (31/12).

The reported plan signals a major expansion of the company’s artificial intelligence infrastructure investment.

ByteDance Increased Nvidia Chip Spending Throughout 2025

Despite facing multiple setbacks, ByteDance spent 85 billion yuan on Nvidia chips during 2025, according to the South China Morning Post. The reported 2026 spending would represent a further increase in its AI-related expenditure.

ByteDance is one of China’s largest technology firms focused on AI operations and has been evaluated at a market capitalization of $500 billion.

US Export Controls Allow Limited Nvidia GPU Sales to China

China remains restricted from accessing Nvidia’s current-generation Blackwell products. However, the Trump administration recently approved the sale of Hopper-based H200 GPUs to Beijing.

Following the change, Chinese authorities reportedly held meetings with domestic technology companies, including ByteDance, to assess inventory needs before allowing such transactions.

China Pushes Self-Reliance as ByteDance Develops Custom AI Chips

China does not permit foreign silicon in its data centers and continues to push for technological self-reliance. Many companies are seeking to replace Western technology with domestic alternatives.

As part of this effort, ByteDance is reportedly developing two custom AI GPUs with Broadcom and TSMC, which are expected to debut in 2026.

Nvidia GPUs Remain Key for AI Training Workloads

Around a year ago, ByteDance began renting cloud computing capacity overseas to bypass U.S. sanctions that restrict server construction inside China. TikTok relies heavily on AI for content recommendations, advertising, and content moderation.

Although ByteDance is developing its own chips, Nvidia GPUs remain critical for AI training workloads. This includes supporting Doubao, which is described as the most popular AI chatbot in China.

PHOTO: BLOOMBERG/ORE HUIYING

This article was created with AI assistance.