"ByteDance, the parent company of TikTok, is working with a Southeast Asian company on plans to use Nvidia's Blackwell chips in Malaysia for AI research and development. The partner is a Tier 1 Nvidia cloud partner, meaning it gets priority access to Nvidia's latest chips directly from Nvidia. ByteDance plugs in through that relationship to access hardware it cannot legally obtain at home."
"Nvidia's Blackwell chips are prohibited from being sold directly in China, which is precisely why this arrangement exists. The U.S. built a wall. ByteDance found a door in Malaysia."
"Any Blackwell spending ByteDance routes through a Southeast Asian Tier 1 partner would represent revenue beyond what Nvidia included in its Q1 FY2027 outlook. Jensen Huang put the demand picture plainly on the last earnings call: 'Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute.'"
ByteDance, TikTok's parent company, is obtaining Nvidia's Blackwell AI chips through a Tier 1 Nvidia cloud partner in Malaysia, bypassing U.S. export restrictions that prohibit direct sales to China. This arrangement allows ByteDance to access cutting-edge hardware for AI research and development outside Chinese borders. Nvidia excluded China data center revenue from its forward guidance, making any Blackwell spending through this Southeast Asian route represent upside beyond current outlooks. The situation reflects strong enterprise AI adoption demand, with customers racing to invest in AI compute. Broadcom also benefits as a known ByteDance custom chip supplier, with AI revenue reaching $8.4 billion last quarter, up 106% year-over-year.
Read at 24/7 Wall St.
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