ByteDance, the parent company of TikTok, is reportedly planning to invest over $12 billion in artificial intelligence (AI) chips in 2025, a significant increase from last year's expenditure. This move comes amidst heightened pressures from the Chinese government to strengthen domestic industries as U.S. sanctions limit access to advanced chip technology. The reported plan allocates $5.5 billion for purchasing chips from domestic manufacturers like Huawei while the remaining $6.8 billion is earmarked for expanding overseas AI infrastructure. However, ByteDance has publicly denied these claims, asserting that the details regarding their budget and planning are incorrect. Despite ongoing U.S. sanctions affecting the Chinese AI sector, the demand for AI-driven applications in China is surging, evidenced by a substantial growth in user engagement with AI chatbots. ByteDance continues to emphasize its commitment to AI development while navigating complex regulatory environments.

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