ByteDance, the parent company of TikTok, is planning a substantial capital investment of over 150 billion yuan ($20.64 billion) in 2025, with a significant portion directed towards advancing artificial intelligence, sources familiar with the matter revealed.

Approximately half of this budget will be allocated overseas, primarily for AI infrastructure projects such as data centers and networking technology. This strategic expenditure is expected to benefit major players like Huawei Technologies, Cambricon Technologies, and U.S. chipmaker Nvidia, according to the sources, who wished to remain anonymous due to the sensitive nature of the information.

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ByteDance, however, dismissed the claims, stating that the details regarding its spending are inaccurate, without providing further clarification.

In response, Nvidia declined to comment, while Huawei and Cambricon did not immediately respond to requests for comment.

This investment comes as ByteDance aims to consolidate its position as a leader in AI technology. Despite starting 2024 behind its competitors, the company now boasts over 15 independent AI applications, surpassing rivals such as Baidu and Tencent. Notable among its creations is the popular chatbot, Doubao. The spending plan is also set to strengthen ByteDance’s AI capabilities abroad, especially at a time when the future of TikTok remains uncertain in the United States, where a 75-day delay in the enforcement of a potential ban on the app was recently signed into effect by U.S. President Donald Trump.

While ByteDance, a privately held company, does not typically disclose financial figures, the new spending strategy represents a significant step forward. The Financial Times had earlier reported that the company plans to invest $12 billion in AI infrastructure, with additional funds allocated to secure Nvidia chips outside China, where the U.S. imposes restrictions on high-tech exports.

ByteDance is already the largest consumer of Nvidia’s H20 AI chips, which were specifically designed for the Chinese market in light of the restrictions. Additionally, it is Nvidia’s top client in Asia for cloud-based chips, sources have indicated.

In China, ByteDance’s AI applications include Doubao, which boasts 75 million active users, as well as the text-to-video tool Jimeng, the image generator Xinghui, and platforms like Kouzi and Maoxiang for chatbot creation and emotional support. Internationally, ByteDance has adapted its leading apps for foreign markets, with Doubao being known as Cici and Jimeng as Dreamina outside China.

ByteDance recently updated its flagship AI model, also called Doubao, positioning it to compete with Microsoft-backed OpenAI’s advanced reasoning products.

Despite these ambitious plans, ByteDance’s AI investments remain modest compared to its American counterparts. In 2024, Alphabet, Google’s parent company, allocated $50 billion for chips, data centers, and related expenses, while Microsoft spent $55.7 billion in its fiscal year, with a considerable portion devoted to AI infrastructure.