ByteDance, the Chinese owner of TikTok, has found a method to obtain NVIDIA's cutting-edge AI hardware despite U.S. export limitations, as detailed in a Wall Street Journal article. The firm is collaborating with Aolani Cloud to construct Blackwell-based computing infrastructure in Malaysia.
This arrangement is expected to provide ByteDance with approximately 36,000 units of the B200 processor, NVIDIA's top-tier offering. The project is projected to exceed $2.5 billion in expenses. ByteDance intends to leverage this enhanced capability for artificial intelligence innovation beyond China's borders.
Due to its California origins, the B200 remains unavailable in China under American export regulations. Consequently, several Chinese enterprises are pursuing similar strategies to ByteDance's partnership with Aolani Cloud. The Singapore-headquartered entity will procure the parts directly from NVIDIA and manage operations solely in Malaysia, thereby enabling ByteDance's involvement.
NVIDIA's representative explained that the regulations explicitly permit the establishment and management of cloud facilities in non-restricted nations. Furthermore, the company conducts thorough evaluations of all cloud collaborators prior to granting access to its technology.
An Aolani Cloud spokesperson informed Reuters that the organization complies fully with relevant export compliance standards, positioning ByteDance as one among numerous clients. The company aims to deliver cloud services to various businesses throughout Asia and worldwide. Notably, Aolani's existing infrastructure totals about $100 million in value, while ByteDance's contribution will reach $2.5 billion.
Recently, the United States permitted ByteDance to purchase NVIDIA's H200 processors, though these face a 25% import duty. The approval for the export permit hinges on NVIDIA implementing a Know-Your-Customer protocol to block access by China's armed forces, a condition NVIDIA has not yet fulfilled.