ByteDance, the parent company of TikTok, is planning to spend approximately 100 billion yuan (US$14 billion) on AI chips from Nvidia in 2026, according to a recent report by Hong Kong-based daily South China Morning Post.

Citing people familiar with the matter, the report states that this purchase would mark a significant increase from an estimated 85 billion yuan allocated for 2025.

The spending plan is contingent on Nvidia being permitted to sell its H200 graphic processing units (GPUs) in China, a market subject to US export restrictions. As per the South China Morning Post report, the budget is part of the Beijing-based company's broader capital expenditure strategy for artificial intelligence. ByteDance's computing needs are reportedly rising across its app portfolio, cloud service, and large language model projects.

The report also noted that ByteDance has an internal chip design unit with around 1,000 employees, which has developed a processor matching the performance of Nvidia's China-specific H20 chip at a lower cost. This reflects a wider trend among Chinese tech firms seeking to develop their own semiconductors for greater supply chain control.

The reported budget figures could be subject to change. The news was first reported by the South China Morning Post; Reuters noted it could not immediately verify the report.