ByteDance Plans $14 Billion Chip Purchase for 2026 Amid Rising Computing Needs
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 31 2025- Expanded Procurement Plans: ByteDance plans to purchase $14 billion in computing chips for 2026, significantly increasing its budget from 85 billion Yuan in 2025, which underscores its commitment to enhancing computing capabilities amid rising application demands, likely boosting its competitiveness in AI and cloud computing.
- Localization Strategy: The company intends to order $5.7 billion worth of Huawei Ascend processors in 2026, reflecting a growing preference for domestic products among Chinese firms amid geopolitical tensions, which may reduce reliance on foreign suppliers and enhance supply chain security.
- AI Application Growth: ByteDance's Doubao chatbot processed over 50 trillion tokens in December, a substantial increase from 4 trillion last year, indicating a surge in demand for its AI applications, which is expected to drive further investments in intelligent applications and cloud computing.
- Chip Development Progress: ByteDance's chip manufacturing division is developing a lower-cost domestic chip to compete with Nvidia's H200, demonstrating the company's ongoing investment in technological self-reliance, which could reduce future dependence on external technologies.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
