According to Bloomberg, ByteDance is considering raising its capital expenditure in 2026 to as much as $70 billion, primarily for data center construction and procurement of advanced chips—a significant increase over previous plans. Most of this spending is expected to be covered by ByteDance’s projected profits of roughly $50 billion in 2025. Meanwhile, South China Morning Post cites sources familiar with the matter as saying that ByteDance’s budget for AI infrastructure in 2026 has already been increased by at least 25%, with AI chip purchases alone amounting to approximately ¥10 billion ($1.4 billion).
Amid this expansion drive, ByteDance’s suite of AI products—including the Doubao AI assistant—is experiencing rapid growth, driving soaring demand for computing power. At the same time, U.S. export restrictions have limited access to high-end chips, pushing global chip prices upward. This has further compelled Chinese tech firms to secure strategic suppliers and develop localized AI supply chains. The plan remains under internal review, and its final scale may still be adjusted based on market and business conditions.