FT: TikTok owner wants to invest $12bn in AI, company denies it

TikTok’s owner, Chinese company ByteDance, plans to invest more than USD 12 billion (roughly CZK 290 billion) in artificial intelligence (AI) infrastructure this year, the Financial Times (FT)reports, citing sources familiar with the situation . ByteDance is currently facing pressure from Washington to sell its popular video-sharing app in the United States.

Chip investments

ByteDance plans to spend 40 billion yuan (roughly CZK 133 billion) in 2025 to acquire chips in China, the FT reported. It then plans to invest about $6.8 billion abroad to expand its ability to train basic models using advanced Nvidia chips.

About 60 percent of ByteDance’s semiconductor orders would go to Chinese suppliers such as Huawei and Cambricon, according to the report. The company would outsource the rest to US-based Nvidia. The company will reduce those orders because of U.S. export controls.

Pressure

Beijing has given informal instructions to its technology companies to buy at least 30 percent of chips from its own suppliers, the report said.

U.S. President Donald Trump on Monday signed an executive order to postpone the TikTok ban, which was originally set to take effect on Jan. 19.

Source: Czech Press Office

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