ByteDance Plans To Invest IDR 195 Trillion For AI Chips In 2025

ByteDance, the parent company of TikTok, will soon invest in artificial intelligence infrastructure (AI) (photo: x @yogiliman)

JAKARTA ByteDance, the parent company of TikTok, is taking a major step in artificial intelligence (AI) infrastructure with an investment plan of more than US$12 billion (Rp195 trillion) by 2025, according to a Financial Times report on Tuesday, January 21.

The move comes amid pressure from Washington urging the Chinese company to sell its popular video-sharing app in the United States.

"Anonymic information about our plan is inaccurate," a ByteDance spokesman said in response to the report, quoted by VOI from FT.

ByteDance is reportedly planning to spend 40 billion yuan (Rp89.3 trillion) to buy AI chips in China by 2025. In addition, around US$6.8 billion (Rp110.4 trillion) will be invested abroad to improve basic model training capabilities (foundation model training) by using Nvidia's advanced chips.

Nvidia declined to comment on the report.

About 60% of ByteDance's domestic semiconductor orders will be directed to Chinese suppliers such as Huawei and Cambricon. The rest will be used to buy Nvidia chips that have been adjusted to comply with US export control rules, according to the report.

Beijing reportedly provides informal guidance to domestic technology companies to purchase at least 30% of their chips from local suppliers. TikTok, Huawei, and Cambricon have not yet responded to requests for comment from the media.

Meanwhile, US President Donald Trump on Monday, January 20, signed an order to postpone the ban on TikTok, which was previously scheduled to take effect from January 19.