ByteDance will spend $23 billion on AI infrastructure in 2026
Chinese technology group ByteDance, best known as the owner of TikTok, is preparing a major push in artificial intelligence for 2026, planning roughly $23 billion (about 160 billion yuan) in capital expenditure on AI infrastructure. The company intends this outlay to expand servers, data centres, and next-generation compute capacity that supports its AI models and services.
This proposed budget represents an increase from the roughly 150 billion yuan it allocated for similar purposes this year and underscores ByteDance’s intent to strengthen its position in AI technology development. Reuters and the Financial Times reported the figures, though the details have not yet been independently confirmed by Reuters.
Focus Areas and Competitive Context
About half of the planned spending is slated for advanced AI semiconductors, including Nvidia H200 chips, despite restrictions that have complicated access to the most cutting-edge hardware. ByteDance has begun test procurement of tens of thousands of such processors and plans to expand data centre capacity overseas as well.
Even with this spending increase, ByteDance’s 2026 AI budget remains smaller than the combined AI infrastructure spending of some major U.S. tech firms, which together have invested hundreds of billions of dollars in recent years. The strategy reflects both competitive intent and the challenges of navigating export controls and global supply limitations
