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ByteDance plans to sidestep U.S. sanctions by renting Nvidia GPUs in the cloud — report says it has set aside $7 billion budget


That's a big chunk of the TikTok owner's $20 billion AI infrastructure budget.

However, if the report is correct and ByteDance invests $7 billion in cloud access to Nvidia GPUs, it will be one of the world’s largest consumers of AI hardware. We are not sure that there are nearly 615,000 H100 GPUs available for rent in the Middle East and Asia, and we are also not sure that ByteDance needs that many processors for its training and inference workloads, as its AI projects are fairly limited. For instance, ByteDance has reportedly spent over $2 billion on more than 200,000 Nvidia H20 GPUs in 2024, and it is unlikely that the company will cease buying its own hardware and refocus entirely on relying on cloud providers from other countries.

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