TikTok parent company ByteDance has increased its planned spending on AI infrastructure by 25% this year, raising the total to RMB 200 billion ($28 billion), as rising memory chip costs continue to push up expenses, according to people familiar with the matter. The company had initially set its AI capital expenditure budget at RMB 160 billion ($22.5 billion) late last year, but has since revised it upward to RMB 200 billion ($28 billion).
ByteDance is also planning to allocate a larger share of its investment toward domestically produced AI chips. A source said the budget increase reflects both the company’s deepening commitment to AI and the rising cost of memory chips. [IThome, in Chinese]
