ByteDance plans to invest $23 billion in artificial intelligence.

According to a Financial Times report on December 23, ByteDance plans to further increase its investment in artificial intelligence (AI) next year, reaching billions of dollars, to keep pace with the rapid development of AI by US tech companies.

Two sources familiar with the matter revealed that the company has initially planned to invest approximately 160 billion yuan (about $23 billion) in capital expenditures in 2026, primarily for the construction and improvement of AI infrastructure.

This budget represents a significant increase compared to this year—ByteDance invested approximately 150 billion yuan in AI infrastructure in 2024, demonstrating the company's continued commitment and long-term strategic planning in AI.

The sources further indicated that nearly half of the total budget is expected to be used to purchase advanced semiconductor chips necessary for developing AI models and related applications. To ensure supply chain and R&D progress, ByteDance has already allocated a budget of up to 85 billion yuan for AI processor procurement in 2025.

This large-scale investment highlights ByteDance's ambition in generative AI, large-scale model training, and commercial applications. It also reflects how, against the backdrop of an increasingly fierce global AI race, Chinese technology companies are actively maintaining their competitive position with leading international groups by strengthening investment in core technologies.

As the demand for AI chips continues to rise, such significant capital expenditure plans will further influence the supply and demand structure and supply chain trends in the global semiconductor market. (Source: BLOCKBEATS)