ByteDance was buying more Nvidia chips than any other Chinese company in 2025, aiming to secure computing power.
Published November 26, 2025
Chinese regulators have banned TikTok owner ByteDance from installing Nvidia chips in new data centers.
Technology publication The Information first reported the development on Wednesday, citing two company employees.
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ByteDance bought more Nvidia chips than any other Chinese company in 2025 as it rushes to secure computing power for its more than 1 billion users amid concerns that the U.S. could limit supply, according to a report.
The reported ban underscores Beijing’s efforts to reduce its dependence on U.S. technology, an effort that has intensified as the U.S. government tightens controls on exports of advanced semiconductors to China.
In August, Chinese regulators asked local companies to halt new orders for Nvidia AI chips and have since encouraged companies to use domestically produced processors, Bloomberg reported, citing people close to China’s technology regulator.
“Due to the regulatory situation, we are unable to offer competitive data center GPUs in China, leaving that large market to rapidly growing overseas competitors,” an Nvidia spokesperson told Reuters.
Reuters reported earlier this month that the Chinese government issued guidelines requiring new state-funded data center projects to use only domestically produced artificial intelligence (AI) chips.
China is accelerating its plans to build an alternative AI ecosystem and achieve chip self-sufficiency, even as trade tensions with the United States remain fragile.
The Washington government has banned the sale of Nvidia’s cutting-edge chips to China, allowing only scaled-down versions such as the H20. Nvidia has introduced chips exclusively for China, but demand has slumped and some major tech companies are holding off on placing orders.
After meeting with Chinese President Xi Jinping earlier this month, U.S. President Donald Trump said the U.S. government would “allow us to do business with Nvidia, but not on cutting-edge chips.”
On Wall Street, Nvidia shares rose 1.8% in midday trading.
