In addition to its own usage, ByteDance makes less than 10 per cent of its total computing power inventory available for sale, generating revenue for its cloud computing unit, Volcano Engine, according to the report.
The news comes amid surging demand for computing power, driven by rapid AI adoption and tighter US export restrictions, which have made access to advanced semiconductor technologies more difficult for Chinese companies.
Chinese firms – including ByteDance, Alibaba, and Tencent – ordered at least US$16 billion worth of Nvidia’s H20 chips in the first quarter, according to a report by tech news outlet The Information. Many of these orders were for an upgraded version that integrated the high-bandwidth memory used in Nvidia’s Blackwell series, the report said.
