Chinese company ByteDance plans to spend $14 billion on NVIDIA chips in 2026.
ByteDance, the owner of TikTok, plans to invest about 100 billion yuan ($14 billion) in the purchase of artificial intelligence chips from NVIDIA in 2026, provided regulatory conditions allow.
The expected increase in chip purchase spending marks a significant step for ByteDance toward strengthening its technological capabilities, particularly in artificial intelligence. In 2025, the company’s spending on these needs amounted to about 85 billion yuan. However, the implementation of this ambitious financial strategy largely depends on the United States’ stance on supplying NVIDIA chips to China.
ByteDance is also actively developing its internal chip development capabilities, where about 1,000 employees are currently working. The company has already made some progress in creating its own processors similar to NVIDIA H20, but cheaper. This will reduce dependence on imported technologies.
At the same time, NVIDIA is trying to increase the production of its H200 chips for Chinese companies through collaboration with Taiwan Semiconductor Manufacturing, as it has already received orders for 2 million chips, despite having only 700,000 units in stock.
China’s efforts to strengthen its own technological base also include commitments to use 50% local equipment when expanding manufacturing capabilities, although Beijing has not officially established this as a mandatory rule.
The United States imposed restrictions on the export of advanced chips to China in 2022, citing the curbing of the modernization of Chinese armed forces. Only at the end of 2025 was the export of H200 chips allowed, but with additional fees of 25% and the condition of integrating geolocation control technologies. Despite this, U.S. President Donald Trump introduced a series of measures to support American manufacturers.
Chinese scientists and engineers are working hard to develop their own technologies to ensure the country has independent semiconductor supply chains. These steps reflect China’s strategic goal of reducing dependence on the United States by offering alternatives in the field of high technology.
| Parameter | 2025 | 2026 (forecast) |
|---|---|---|
| ByteDance spending on chips | 85 billion yuan | 100 billion yuan |
| NVIDIA chip orders | – | 2 million units |
| NVIDIA inventory | – | 700,000 units |
