ByteDance, owner of TikTok, plans to spend about $14.29 billion on artificial intelligence chips from Nvidia in 2026, a hefty increase from roughly ​$12.15 billion in 2025, if the U.S. company is ⁠allowed to sell its H200 graphics processing units in ⁠China, ​the ⁠South China Morning Post reported Wednesday.

The budget, which could change, is part of the Beijing-based unicorn’s ambitious capital spending plan in AI for 2026. The company, with a private market capitalisation of US$500 billion, has built up a chip design unit that employed around 1,000 staff, one of the people briefed on the situation said.

ByteDance’s internal chip unit has made progress in the tape-out of a processor that matches the performance of Nvidia’s H20 chip, a China-tailored chip, but at a lower cost. It is not the only Chinese tech group attempting to develop its own chips for long-term control over supply and costs.

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