ByteDance has bought more Nvidia chips than any other Chinese firm in 2025 in a race to secure computing power.
Chinese regulators have blocked TikTok owner ByteDance from deploying Nvidia chips in new data centers.
Tech publication The Information first reported the development on Wednesday, citing two company employees.
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ByteDance reportedly bought more Nvidia chips in 2025 than any other Chinese firm as it races to secure computing power for its billion-plus users amid concerns the United States could curb supplies.
The reported sanctions underscore Beijing’s efforts to reduce dependence on American technology, a campaign that has intensified as Washington tightens restrictions on exports of advanced semiconductors to China.
In August, Chinese regulators told local companies to halt new orders of Nvidia AI chips and have since pushed companies to switch to domestic processors, Bloomberg reported, citing people close to Chinese tech regulators.
“The regulatory landscape does not allow us to offer competitive data center GPUs in China, leaving that huge market to our fast-growing overseas competitors,” an Nvidia spokesperson told Reuters news agency.
Earlier this month, Reuters reported that the Chinese government had issued guidance for new data center projects that receive state funding to use only domestically produced artificial intelligence (AI) chips.
China is accelerating plans to build an alternative AI ecosystem and achieve chip self-reliance, even as trade tensions with Washington remain a delicate situation.
Washington has banned the sale of Nvidia’s most advanced chips to China, allowing only smaller versions like the H20. Nvidia introduced a China-specific chip, but demand has been low, with some major tech companies choosing not to place orders.
After talks with Chinese President Xi Jinping earlier this month, US President Donald Trump said Washington would “let them deal with Nvidia but not in terms of the most advanced chips”.
On Wall Street, Nvidia’s stock is up 1.8 percent in afternoon trading.
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