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ByteDance Building Major AI Infrastructure Outside China with Nvidia Chips

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ByteDance is reportedly working with Samsung to build its own AI chips, aiming to bypass hardware shortages and trade restrictions. [SoftwareAnalytic]

TikTok’s Chinese parent company, ByteDance, is reportedly gathering significant computing power using top-tier Nvidia chips, but doing so outside of China. This move suggests a strategic effort to bolster its AI capabilities globally.

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According to the Wall Street Journal, ByteDance is collaborating with Aolani Cloud, a company based in Southeast Asia, to set up roughly 500 Nvidia Blackwell computing systems in Malaysia. These systems will house an estimated 36,000 B200 chips, forming a powerful hub for AI development.

This massive hardware project will likely cost over $2.5 billion. Currently, Aolani operates with about $100 million worth of hardware, making this a substantial expansion for the firm as well.

ByteDance intends to use this computing power for its AI research and development efforts outside of China. The company also aims to meet the increasing global demand for AI services from its various customers, indicating a broad application for this new infrastructure.

A spokesperson for Aolani told that the company strictly follows all relevant export control regulations. They also stated that Aolani plans to offer cloud-computing services to numerous companies throughout Asia and worldwide.

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one report stated that the United States might allow ByteDance to purchase Nvidia’s H200 chips, but Nvidia had not agreed to the proposed conditions for their usage. This ongoing situation highlights the complex geopolitical factors influencing the global tech landscape, particularly concerning advanced AI hardware. ByteDance’s decision to build this infrastructure outside China reflects a proactive approach to navigate these challenges and secure its position in the competitive AI race.

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