ByteDance is aggressively positioning itself as a leader in AI technology in China, marking a significant strategic move to enhance its capabilities and competition.
Despite U.S. restrictions on advanced chip sales, ByteDance is purchasing Nvidia H20 chips for operational use while seeking more powerful Nvidia products for its data centers outside the U.S.
While Chinese firms like Baidu and Huawei are developing their own AI chips, ByteDance's acquisition of Nvidia chips suggests a temporary reliance on established technology as they innovate.
Nvidia's financial results indicate substantial growth, but the increasing demand from ByteDance may not immediately affect its fortunes due to production limitations and regulatory hurdles.
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