ByteDance, the Chinese parent company of TikTok, is reportedly set to ramp up its investment in artificial intelligence (AI) to the tune of $23 billion next year amid a broader strategy to keep up with its U.S. competitors.

ByteDance Sets Sights On AI Leadership

ByteDance is planning to increase its capital expenditure in AI infrastructure in 2026. The company has set aside CNY160 billion ($23 billion) for this purpose, a significant increase from the CNY150 billion it invested this year, according to a report by the Financial Times on Tuesday.

About half of the budget will be directed toward purchasing advanced semiconductors to build AI models and applications. Despite continued uncertainty over Chinese companies' access to Nvidia (NASDAQ:NVDA) chips, ByteDance has set aside CNY 85 billion ($12.07 billion) for AI processors next year.

ByteDance, one of China's top AI infrastructure builders, is ...