ByteDance plans to spend up to $70 billion on AI this year

ByteDance is reportedly discussing plans to spend up to $70 billion this year, mostly on data centers and AI infrastructure. The money would come from its expected $50 billion profit in 2025. The plan is still tentative and will be reviewed quarterly.

Last year, the company spent about $25 billion on capital. If this new plan goes through, it would boost ByteDance's lead in AI chatbots and video generation, and help expand overseas. Since building data centers costs less in China, ByteDance could build similar AI computing power at a lower cost than US rivals.

Bloomberg also reported that ByteDance recently agreed to buy millions of Qualcomm chips for its AI agent services. The company is already one of China's biggest buyers of servers and AI chips, as it runs the country's largest video platform. Future budgets will be adjusted based on business needs, hardware, and power supply.