ByteDance Ramps Up Domestic AI Chips: Billion-Yuan Delivery Imminent, 2026 Procurement Plan Exceeds RMB 40 Billion
Following a massive capital investment in 2025, ByteDance continues its aggressive AI spending in 20...
Following a massive capital investment in 2025, ByteDance continues its aggressive AI spending in 2026. Our sources reveal that ByteDance plans to purchase Huawei’s Ascend chips with a total value exceeding RMB 40 billion, with the first batch worth over 10 billion RMB set for delivery—a milestone for domestic AI computing power.
The surge in domestic procurement is driven by two factors: the Nvidia H20 supply disruption in April 2025 and explosive growth in token usage from ByteDance’s cloud computing service Volcano Engine and AI application Doubao. ByteDance is rapidly building a self-controlled large-scale AI computing center, with projected additional rack power reaching 1.6GW—nearly double that of 2025.
Volcano Engine and Doubao are experiencing explosive demand. As of December 2025, Doubao’s large model daily token usage exceeded 50 trillion, up over 200% year-on-year. The Doubao app aims for 130 million daily active users (DAU) in 2026, with API revenue expected to surpass RMB 10 billion, a nearly tenfold increase.
Supported by strong cash flow and highly efficient monetization from core products like TikTok, Douyin, and Toutiao, ByteDance is transforming capital into computing power and then into AI intelligence, aiming to establish an absolute competitive advantage in the AI arena.
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