NIXSolutions: ByteDance to Spend Billions on Accelerators

ByteDance, the Chinese tech giant, reportedly plans to allocate $7 billion this year for Nvidia computing accelerators, with new insights from the Financial Times shedding light on the expense structure. Of the $5.5 billion earmarked for infrastructure development in China, around 60% may go toward accelerators from Chinese developers like Huawei and Cambricon.

NIX Solutions

This strategy aligns with tightening U.S. sanctions restricting Nvidia from supplying advanced accelerators to China. In response, Chinese authorities recommend that local companies fulfill up to 30% of their accelerator needs with domestic products. ByteDance appears to exceed this requirement, further strengthening its collaboration with local suppliers.

Global Expansion and Spending

Interestingly, ByteDance’s overall spending on accelerators may reach $12 billion this year—nearly doubling earlier estimates. Of this amount, $6.8 billion is expected to support infrastructure outside China, where the company will likely prioritize purchasing Nvidia accelerators, notes NIXSolutions.

While ByteDance representatives have dismissed these figures as inaccurate, sources suggest the company was the second-largest buyer of Nvidia’s Hopper accelerators last year. Achieving $12 billion in spending could position ByteDance as Nvidia’s top customer for 2024, though geopolitical tensions surrounding its TikTok platform may complicate this ambition.

No Confirmation Yet

Both ByteDance and Nvidia have refrained from commenting on these claims. However, with the escalating competition in AI and infrastructure, ByteDance’s aggressive investment strategy underscores its commitment to staying ahead in the global market. We’ll keep you updated as more details emerge about their progress and priorities.