« The Wall Street Journal » reports that ByteDance, TikTok’s parent company, has obtained authorization. They are establishing a large-scale AI computing infrastructure in Southeast Asia, planning to deploy approximately 500 Nvidia Blackwell AI systems in Malaysia, totaling around 36,000 B200 GPUs to support their global AI expansion. Insiders indicate that the total cost of related equipment may exceed $2.5 billion.
ByteDance builds AI computing base in Malaysia
The report states that ByteDance is collaborating with a Southeast Asian company called Aolani Cloud to advance this project. Aolani will purchase Nvidia-based AI servers from server integrator Aivres, which will then be deployed in Malaysia data centers. If the transaction proceeds smoothly, this project will become an important foundation for ByteDance’s overseas AI infrastructure. Sources say ByteDance has already paid part of the prepayment, and the equipment will also be deployed in Malaysia facilities.
Circumventing US chip export restrictions via Southeast Asia
Since 2023, the US government has implemented stricter AI chip export controls on China, restricting Nvidia from directly selling the most advanced GPUs (such as the Blackwell series) to Chinese companies. As a result, Chinese tech firms find it difficult to acquire sufficient computing power to develop large AI models. In this context, Chinese companies are beginning to obtain computing resources through overseas data centers. This has also led to a new industry model: intermediary companies establishing cloud data centers overseas equipped with Nvidia GPUs, then renting out the computing power to Chinese tech companies.
Nvidia states that export regulations permit the construction and operation of AI cloud infrastructure outside China, so related collaborations are conducted within a compliant framework.
ByteDance’s global AI strategy
In recent years, ByteDance has actively entered the AI field, aiming to compete with US tech giants like Google and OpenAI. Besides TikTok, the company has launched several AI applications, including the AI video model Seedance, which recently gained market attention for its ability to generate realistic short scenes from text scripts.
However, geopolitical factors remain a significant variable in ByteDance’s global expansion. In January this year, ByteDance transferred control of TikTok’s US operations to Oracle, Silver Lake Management LLC, and MGX, a Dubai-based investment firm, in exchange for development space.
(ByteDance announced the establishment of a joint venture TikTok USDS, releasing shares to resolve regulatory crises)
Currently, about a quarter of ByteDance’s revenue comes from markets outside China. The company continues to strengthen overseas computing and R&D resources, aiming to establish global competitiveness in AI applications. In addition to Malaysia, previous reports also indicated that ByteDance has discussed deploying over 7,000 B200 GPUs in Indonesia data centers for AI servers.
This article WSJ: ByteDance bypasses bans, deploying 36,000 cutting-edge Blackwell chips in Malaysia first appeared on Chain News ABMedia.
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