ByteDance is preparing to raise its capex to CNY160 billion (approx. US$22.70 billion) in 2026, allocating over half of this amount, CNY85 billion, towards purchasing artificial intelligence chip processors, according to sources cited by the Financial Times. The planned increase from CNY150 billion in 2025 reflects ByteDance's intensified emphasis on AI development.
A significant portion of ByteDance's capex will be allocated to acquiring advanced chips to develop AI models and applications. However, it remains uncertain whether Beijing-based companies can secure reliable supplies of high-end Nvidia processors under the current US export restrictions. If sales of Nvidia's H200 chips are permitted, ByteDance intends to place an initial order for 20,000 units at roughly US$20,000 each to evaluate supply reliability and performance. Insiders told the Financial Times that ByteDance may increase spending if chip availability improves.
Meanwhile, Reuters indicates that Nvidia is targeting the export of 5,000 to 10,000 H200 chip modules—equivalent to 40,000 to 80,000 individual chips—to China ahead of the Lunar New Year in mid-2026. Yet, Chinese authorities have not granted approval for these procurement requests, leaving the timing of shipments uncertain.
Though ByteDance is among China's prominent AI data center operators, it remains behind major American peers in investment magnitude. US cloud service providers like Microsoft Corporation, Alphabet Inc., Amazon Web Services, and Meta Platforms are projected to collectively invest over US$300 billion in AI initiatives by 2025, highlighting a significant gap in spending between Chinese and US companies. ByteDance's increased capex signals an effort to narrow this divide amid growing global competition in AI technology development.
Article edited by Jack Wu
