TikTok's Chinese parent company ByteDance has figured out a way to access NVIDIA's latest AI chips despite export restrictions, according to a report by The Wall Street Journal. The company is working with a firm called Aolani Cloud and building out Blackwell computing systems in Malaysia.
This should give ByteDance access to around 36,000 B200 chips. That's NVIDIA's most powerful processor. The hardware buildout will reportedly cost more than $2.5 billion. The company says it plans on using this new computing power for AI research and development outside of China.
The country has been unable to access the B200 chip, as it was designed in California and, as such, subject to US export controls. This has led some Chinese companies to do what ByteDance is doing with Aolani Cloud. The Singapore-based firm will buy up the components from NVIDIA and will operate exclusively in Malaysia, giving ByteDance access in the process.
"By design, the export rules allow clouds to be built and operated outside controlled countries," an NVIDIA spokesperson said. They also said that all of the company's cloud partners go through review before being approved to receive its products.
A representative from Aolani Cloud told Reuters that the company adheres to all applicable export control regulations and that ByteDance will be just one of many customers. It plans on providing cloud-computing services to multiple companies across Asia and the globe. However, it's worth noting that Aolani currently operates with just $100 million worth of hardware and ByteDance is planning to inject a whopping $2.5 billion.
The US did recently allow ByteDance to buy NVIDIA's H200 chips, but they've been slapped with a 25 percent tariff. Additionally, the US government mandated that the export license would only be approved if NVIDIA accepted a Know-Your-Customer requirement, which is an attempt to ensure that China's military can't access the chips. NVIDIA has yet to agree to these terms.
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