ByteDance to Boost AI Infrastructure Spending by 7% in 2026, Allocating $23 Billion for Chips to Compete Globally

ByteDance plans to increase its capital expenditure on artificial intelligence (AI) infrastructure by 7% in 2026, reaching 160 billion yuan (approximately $23 billion), as part of its efforts to strengthen computing power reserves and respond to the global AI race. This move marks another significant investment by a Chinese tech company in cutting-edge technology, aiming to narrow the gap with U.S. rivals in the field of AI.

According to informed sources, the total budget for 2026 will see nearly half allocated to procuring advanced semiconductors, with a specific 85 billion yuan (about $11.8 billion) reserved for AI processor purchases. This allocation underscores ByteDance’s focus on building a robust computing power foundation to support the development and deployment of its AI models and applications.

ByteDance, one of China’s largest AI infrastructure builders, has been ramping up its investments in AI to compete with global tech giants like Microsoft, Alphabet, and Amazon. The company’s AI services, including its popular chatbot "Doubao," have gained significant traction in the Chinese market, with high daily token usage reflecting strong consumer demand.

The increased spending on AI infrastructure is expected to enhance ByteDance’s capabilities in areas such as large language models (LLMs), computer vision, and natural language processing, further solidifying its position as a key player in China’s AI ecosystem. However, the company still faces challenges in accessing advanced semiconductors, particularly from U.S. suppliers, which could impact the pace of its AI development.
Despite these challenges, ByteDance’s strategic investment in AI infrastructure reflects its long-term commitment to becoming a global leader in artificial intelligence. The company’s focus on computing power and semiconductor procurement aligns with global trends, where access to advanced hardware is seen as critical to advancing AI technology.

Overall, ByteDance’s 2026 AI investment plan underscores the growing importance of AI in the global tech landscape and the intense competition among major players to secure a dominant position in this transformative field.