Bytedance, the Chinese parent company of TikTok, is reportedly partnering with a Singapore-based firm to acquire NVIDIA's advanced B200 AI chips for use in Malaysia, bypassing US export restrictions. This arrangement aims to support AI research and development outside China. The project involves significant investment and adheres to export regulations.
Bytedance has found a workaround to US export controls on advanced AI hardware by collaborating with Aolani Cloud, a Singapore-based company, to build computing systems in Malaysia. According to a report from The Wall Street Journal, this setup will provide access to approximately 36,000 B200 chips, NVIDIA's most powerful processor to date. The initiative is expected to cost over $2.5 billion, with the chips intended for AI research and development outside of China.
The B200 chip, designed in California, falls under US export restrictions that prevent its direct sale to China. Aolani Cloud will purchase the components from NVIDIA and operate the systems exclusively in Malaysia, allowing Bytedance indirect access. An NVIDIA spokesperson stated, "By design, the export rules allow clouds to be built and operated outside controlled countries." The company emphasized that all cloud partners undergo review before receiving products.
A representative from Aolani Cloud told Reuters that the firm complies with all applicable export control regulations. Bytedance will be one of multiple customers, with Aolani planning to offer cloud-computing services to companies across Asia and globally. Currently, Aolani operates with about $100 million in hardware, and Bytedance's planned $2.5 billion investment highlights the scale of this expansion.
Separately, the US recently permitted Bytedance to purchase NVIDIA's H200 chips, but these face a 25 percent tariff and a Know-Your-Customer requirement to prevent access by China's military. NVIDIA has not yet agreed to these terms. This development follows broader trends where Chinese firms seek alternatives to restricted technologies.
