ByteDance Allegedly Navigating US Restrictions to Acquire Nvidia Chips: Latest Report

TikTok’s parent company, ByteDance, is reportedly planning to circumvent U.S. restrictions in order to purchase Nvidia chips, intending to invest approximately $7 billion in these chips in 2025. This information comes from a report by The Information, which cites insider sources. If ByteDance proceeds with its plans, it could position itself as one of the largest holders of Nvidia chips globally, despite U.S. efforts to prevent Chinese firms from acquiring such technology.

Since 2022, the U.S. has implemented export restrictions on certain AI chips to countries like China, where ByteDance is based. These restrictions have tightened over time. However, ByteDance is reportedly exploiting a loophole. Rather than bringing chips directly into China, the company plans to store them in data centers situated in regions like Southeast Asia, which technically does not violate U.S. export controls.

In addition, ByteDance operates Doubao, an AI chatbot in China, which has gained significant popularity with 51 million active users, as reported by the South China Morning Post. TechCrunch has reached out to ByteDance for further details regarding these developments.

For further information, you can view the original report at The Information.

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