Bytedance, the company behind TikTok, is pushing forward with significant investments in artificial intelligence (AI), despite facing challenges related to TikTok. According to reports, Bytedance plans to invest over $10 billion in AI infrastructure, such as data centers and networking equipment, as part of its total investment of more than $20 billion for the current year.
These investments are primarily intended to strengthen Bytedance’s leadership in AI within China. The company has been rapidly advancing in this field since 2024 and now boasts more than 15 standalone AI applications, outpacing competitors like Baidu and Tencent. The most popular AI application from Bytedance is likely the chatbot Doubao.
Bytedance is also looking to expand its AI offerings internationally. However, the specifics of this expansion are unclear, especially as Bytedance faces pressure in the United States over TikTok’s future. The situation remains uncertain after a 75-day extension for enforcing a TikTok ban was signed by then-President Donald Trump.
In addition to these reports, the Financial Times noted that Bytedance plans to invest $12 billion in AI infrastructure. Last December, it was reported that Bytedance intended to purchase Nvidia chips worth up to $7 billion for AI offerings outside China.
Bytedance is already the largest buyer of Nvidia’s H20 AI chips, which were specifically developed for China following US trade restrictions on high-tech exports. Bytedance is also Microsoft’s biggest customer in Asia for accessing Nvidia chips through cloud computing services.
Bytedance’s AI applications in China include:
- Doubao chatbot with 75 million monthly active users
- Jimeng, a text-to-video generator
- Xinghui, an image generator
- Kouzi, a platform for developing custom chatbots
- Maoxiang, for role-playing and emotional support
Internationally, Bytedance has developed counterparts to these applications, such as Cici (Doubao) and Dreamina (Jimeng).
Despite the large sum, Bytedance’s planned investments are modest compared to US tech giants. For instance, Alphabet, Google’s parent company, allocated $50 billion last year for chips, data centers, and other AI expenditures. Microsoft spent $55.7 billion in the fiscal year ending June 30, 2024, with a significant portion dedicated to AI infrastructure.
Bytedance’s strategic investments in AI aim to secure its competitive edge both in China and globally, despite the uncertainties surrounding TikTok’s operations in the US. The company’s focus on AI development reflects its commitment to staying at the forefront of technology innovation.