[News] ByteDance Reportedly to Boost 2026 AI Spend to $23B, Plans Preliminary 20K H200 Chips Order

Following reports that NVIDIA is set to start shipping H200 chips to China by mid-February next year, the country’s top tech firms appear to be accelerating their AI investments. The Financial Times reports that ByteDance, TikTok’s parent company, is preparing to boost its AI spending in 2026, with preliminary plans to allocate RMB 160 billion ($23 billion) in capital expenditure for the year.

The proposed outlay, according to the report, marks an increase from the RMB 150 billion it spent on AI infrastructure this year. Notably, sources cited by the report reveal that ByteDance plans to allocate RMB 85 billion in 2026 specifically for AI processors, despite ongoing uncertainty over whether leading Chinese tech firms will be able to secure NVIDIA chips.

The news comes as NVIDIA reportedly plans to export its H200 chips to China in the coming months. According to Reuters, the U.S. chipmaker has informed Chinese clients that it aims to start shipping its second-most powerful AI processors ahead of the Lunar New Year holiday in mid-February.

ByteDance Plans Major H200 Orders

If Beijing approves the H200 export plan, ByteDance and other Chinese tech firms are expected to place significant orders, the Financial Times reports. With NVIDIA’s initial shipments limited, ByteDance might have to be moving quickly to secure capacity. According to the report, the company plans a preliminary order of 20,000 H200 chips, each valued at around $20,000.

Notably, Reuters points out that NVIDIA plans to meet initial demand using existing inventory. Shipments are expected to total between 5,000 and 10,000 modules—roughly equivalent to 40,000 to 80,000 H200 AI chips.

However, Team Green has also informed Chinese clients that it intends to expand production capacity for the chips, with orders for the additional capacity expected to open in the second quarter of 2026, according to a source cited by the report.

Sources familiar with ByteDance’s plans, as per the Financial Times, say ByteDance could sharply boost its 2026 capital expenditure if it were granted unrestricted access to purchase additional H200 processors.

The company is also investing billions in leasing overseas data centers, where it can legally deploy NVIDIA’s most advanced hardware to train AI models and serve clients beyond China, the report notes, adding these rental agreements are generally classified as operating expenses rather than capital expenditures.

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(Photo credit: ByteDance)