In a significant move to circumvent U.S. export controls, ByteDance is set to gain access to NVIDIA's most advanced artificial intelligence processors. According to a Wall Street Journal report, the parent company of TikTok is partnering with Singapore-based Aolani Cloud to construct computing systems in Malaysia, utilizing approximately 36,000 of NVIDIA's flagship B200 chips.

The arrangement, with an estimated hardware cost exceeding $2.5 billion, is designed to provide ByteDance with substantial computing power for AI research and development conducted outside of China. U.S. regulations have blocked direct sales of the California-designed B200 chips to Chinese entities, prompting companies to seek alternative channels.

NVIDIA confirmed the structure is permissible under current rules. "Export regulations permit clouds to be built and operated outside of controlled countries," a company spokesperson stated, noting all cloud partners undergo a review process. Aolani Cloud told Reuters it complies with all export laws and will serve multiple global clients, not just ByteDance. The scale of the deal is notable, as Aolani's current infrastructure is valued at roughly $100 million.

This Malaysian pathway contrasts with a separate, contentious U.S. approval for ByteDance to purchase NVIDIA's slightly older H200 chips, which came with a 25% tariff and stringent 'Know-Your-Customer' conditions aimed at preventing military use. NVIDIA has not accepted those terms. The Malaysian project, therefore, represents a parallel and massive investment to secure cutting-edge AI hardware, reflecting the intense global competition for computational resources.

Source: Engadget