ByteDance deploys Nvidia AI infrastructure outside of China
TikTok's parent company is investing heavily in artificial intelligence infrastructure abroad. ByteDance plans to use latest-generation Nvidia chips to bolster its research capabilities and meet global demand for AI solutions.
ByteDance is establishing significant computing capacity based on Nvidia's most advanced artificial intelligence chips outside of China, according to the Wall Street Journal. The group is relying on Southeast Asian cloud company Aolani Cloud to deploy approximately 500 Nvidia Blackwell computing systems in Malaysia. This installation would represent nearly 36,000 B200 chips and could cost over $2.5bn. Aolani currently operates about $100m worth of computing equipment.
This infrastructure is intended to support ByteDance's international AI research and development activities and meet growing customer demand for artificial intelligence solutions. Nvidia emphasizes that export rules permit the creation and operation of cloud services in countries not subject to restrictions, which can generate contracts worth tens of billions of dollars. The manufacturer also indicates that all its cloud partners undergo a vetting process before they can receive its products.
Aolani asserts that it complies with all applicable export control regulations and plans to provide cloud computing services to various companies in Asia and the rest of the world. Last month, however, Reuters reported that the United States was prepared to authorize ByteDance's purchase of Nvidia H200 chips, but that the manufacturer had not accepted the proposed terms of use.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
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