ByteDance boosts 2026 AI capex by 25% to $30B amid chip costs

ByteDance, which owns TikTok, has revised its capital expenditure plans for artificial intelligence infrastructure in 2026, now exceeding 200 billion yuan (approximately US$30 billion). This marks a minimum 25% increase from the previously discussed figure of 160 billion yuan late last year. Sources indicate that this adjustment is influenced by the firm’s intensified focus on AI and escalating memory chip prices. Additionally, ByteDance has earmarked a larger share of its budget for domestic AI chips, a strategy common among Chinese tech firms to reduce geopolitical risks and align with Beijing's initiative to prioritize local semiconductors. Among its AI offerings is the Doubao AI chatbot.