TikTok’s Chinese language guardian ByteDance is trying to gas its ambition of changing into a worldwide synthetic intelligence (AI) chief, by increase computing energy with $2.5 billion value of high-end Nvidia chips outdoors China.
In response to a report by the Wall Avenue JournalByteDance is working with South Asian agency Aolani Cloud, drawing up plans to make use of round 500 Nvidia Blackwell computing techniques comprising 36,000 B200 chips at a unit in Malaysia.
Citing folks aware of the matter, WSJ reported that Aolani is shopping for the servers from server options agency Aivres, which assembles servers utilizing Nvidia {hardware}.
If all preparations are competed in accordance with plan, the {hardware} concerned would value greater than $2.5 billion, the publication stated.
What is going to this computing energy be used for?
Reportedly, ByteDance will leverage the computing energy to pursue AI analysis and growth outdoors China, in addition to meet the rising demand for AI from its international prospects, who account for 1 / 4 of its income.
ByteDance already has a powerful footprint within the AI area, and operates 5 of the world’s prime 50 hottest AI apps by month-to-month customers, as per a report by Andreesen Horowitz.
Additional, the TikTok guardian additionally has sizeable groups of AI engineers and researchers the world over, in hubs like San Jose, Seattle, and Singapore, who collaborate with their Chinese language colleagues for foundational AI analysis.
WSJ additionally stated that the Singapore and US groups contribute to growing AI fashions and merchandise designed for markets outdoors China, and the plans for the Malaysia unit may properly observe that blueprint.
A manner round export controls
The event comes as US-China tensions persist, with US export controls remaining in place that forestall Nvidia from promoting its top-of-the-line AI chips, such because the Blackwell collection, on to China, one thing that Chinese language executives say stifle their skill to develop superior AI.
Given present restrictions, Chinese language corporations have additionally began spending extra to entry computing energy past their very own borders, particularly in geographies the place the applicability to US export management guidelines is much less clear.
This, in flip, has led to the expansion of center males who prepare for information centres to be constructed utilizing Nvidia know-how after which lease them to Chinese language tech companies, reported WSJ.
Aolani, the agency working ByteDance on the brand new venture, is considered one of these companies — in a June 2025 description of its work, the corporate stated stated that “Asian hyperscalers” most well-liked to do enterprise with companions akin to itself to make sure “compliance within the present geopolitical setting.”
“We adhere absolutely to all relevant export management rules,” an organization spokesperson was quoted as saying by WSJ.
Based in late 2023, Aolani’s guardian firm is registered within the Cayman Islands, WSJ reported, including that considered one of its buyers embrace Singapore-based enterprise capital agency K3 Ventures.
Individuals aware of the association with ByteDance additionally advised WSJ that Aolani had begun leasing AI servers in Malaysia geared up with Nvidia’s H100 chips to the TikTok guardian from February 2025.
For the most recent venture, ByteDance has already made preliminary funds, the publication reported.