Chinese tech giant ByteDance, the owner of TikTok, is reportedly planning to invest $7 billion in renting Nvidia GPUs through cloud services outside the United States to bypass US sanctions preventing direct purchases of the high-performance processors used for AI. This move is part of ByteDance's $20 billion investment plan for AI infrastructure, which also includes data centers and submarine cables. The US government has imposed restrictions on Chinese entities, including ByteDance, prohibiting them from acquiring the most advanced Nvidia GPUs for their data centers in China. However, ByteDance aims to circumvent these restrictions by renting Nvidia GPUs from cloud service providers located in other countries.
Chinese tech giant ByteDance, the owner of TikTok, is reportedly planning to invest heavily in cloud-based access to Nvidia GPUs to circumvent U.S. sanctions that prevent the company from purchasing the high-performance processors used for AI directly.that China ’s ByteDance has set aside a staggering $7 billion budget to rent Nvidia GPUs through cloud services in countries outside the United States.
While ByteDance has denied the report, industry experts suggest that if the company does indeed invest $7 billion in cloud access to Nvidia GPUs, it would become one of the world’s largest consumers of AI hardware. The report estimates that at a price of around $1.3 per hour for on-demand access to Nvidia’s H100 GPUs, ByteDance could potentially rent a cluster of 614,682 H100 GPUs working around the clock for an entire year.
Another possibility is that ByteDance may continue to procure Nvidia’s cut-down H20 HGX and B20 GPUs to run in its own data centers in China, in addition to renting processors from cloud providers. The company has reportedly already spent over $2 billion on more than 200,000 Nvidia H20 GPUs in 2024.
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Chinese regulators are investigating NVIDIA for potential antitrust violationsIan Carlos Campbell is a Contributing Reporter at Engadget, where he covers the big companies making screens for your pockets, and the weird ways they intersect with entertainment industry. Prior to Engadget, Ian was an Associate Editor at Inverse focused on AR, VR and mobile technology.
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