Key Takeaways
- ByteDance spent billions stockpiling Nvidia GPUs like H100 and H20 ahead of US export restrictions.
- Chinese regulators have blocked ByteDance from using Nvidia chips in new data centers, leaving many chips unused.
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TikTok-owner ByteDance has encountered an unexpected hurdle, as Chinese regulators have prohibited the use of Nvidia chips in its new data centers, according to The Information, which cited two company employees.
China is requiring new data center projects using state funds to use only domestically-made AI chips, per Reuters.
ByteDance reportedly spent billions to stockpile Nvidia’s top GPUs, aiming to maintain computing power for its billion-plus users as US export restrictions limited shipments of advanced chips to China.
The US has blocked sales of Nvidia’s top chips to China, allowing only scaled-down models like the H20. After discussions with Xi Jinping, President Trump said Washington would permit dealings with Nvidia, but not for its most advanced chips.