ByteDance plans to spend $12bn on AI chips this year

Good morning and welcome again. On at present’s agenda:

• ByteDance plans $12bn guess on AI chips

• Trump threatens Putin with extra sanctions

• China sees room to avert a commerce struggle with US

TikTok proprietor ByteDance plans to spend greater than $12bn on synthetic intelligence infrastructure this yr, betting on the cutting-edge expertise for brand new progress as its well-liked video-sharing app comes underneath strain within the US.

The Beijing-based firm has budgeted Rmb40bn ($5.5bn) to amass AI chips in China in 2025, based on two folks accustomed to the plans, which might double the quantity it spent final yr. The group additionally plans to speculate about $6.8bn abroad to beef up its basis mannequin coaching capabilities utilizing superior Nvidia chips.

Beijing has given Chinese language tech corporations casual steering to purchase at the least 30 per cent of their chips from the nation’s personal suppliers, the folks added.

ByteDance, having emerged because the frontrunner in China’s AI race, is doubling right down to construct out its personal AI infrastructure to coach its basis mannequin, in addition to to implement AI capabilities throughout its varied platforms.

Here’s what else we know about the TikTok parent’s plans.

Right here’s what else we’re holding tabs on at present:

• Financial knowledge: Singapore publishes December inflation knowledge, South Korea reviews advance fourth-quarter GDP and Taiwan releases industrial output figures.

• Thailand: A regulation allowing same-sex marriage takes impact, making the nation the primary in south-east Asia to recognise marriage equality (Related Press).

• Japan: The Financial institution of Japan holds its financial coverage assembly forward of an expected rate rise on Friday.

• Outcomes: SK Hynix, Hyundai Motor Firm This autumn and Nidec report earnings.

This Friday, be part of shopper editor Claer Barrett, author of the Type Your Monetary Life Out publication sequence, as she discusses how one can spend money on 2025 with different FT specialists. Register for free.

5 extra high tales

1. Donald Trump has warned Vladimir Putin that the US is able to punish Russia with a barrage of recent commerce restrictions if Moscow fails to achieve an settlement quickly to finish the struggle in Ukraine. The Trump administration believes there are more ways that the US could tighten the screws on Russia financially, along with the sweeping sanctions Joe Biden imposed on Moscow after it invaded Ukraine in 2022.

2. Pakistan will request the extradition of the billionaire property tycoon Malik Riaz Hussain from the United Arab Emirates, focusing on a strong businessman linked to the jailed former prime minister Imran Khan. The developer mentioned fraud allegations by Pakistan’s anti-corruption watchdog are an try and “blackmail” him. Here are more details.

3. Two Iranian cargo vessels carrying an important chemical ingredient for missile propellant will sail from China to Iran over the subsequent few weeks, based on intelligence from safety officers in two western international locations. Officers mentioned the chemical compounds have been being shipped to the Islamic Revolutionary Guard Corps, the elite arm of the Iranian army. Read the full story.

4. Elon Musk poured chilly water on Stargate, a large US synthetic intelligence infrastructure venture introduced by Trump on Tuesday. “They don’t even have the cash”, the Tesla boss mentioned in regards to the $500bn initiative backed by OpenAI and SoftBank, in a uncommon break with the president. Here’s how OpenAI’s chief executive Sam Altman responded.

5. Unique: Chinese language banks have been pitching to work on the blockbuster Hong Kong secondary itemizing of the world’s main EV battery maker CATL for as little as 0.01 per cent in charges. The ultra-low pitches are an indication of the cut-throat competition in the territory’s once-lucrative listings market the place enterprise has considerably slowed.

Information in-depth

Chinese language officers now hope it might be potential to avert a second commerce struggle with the US, after Donald Trump didn’t levy quick tariffs and hinted at a possible broader deal involving TikTok’s possession. There may be “cautious optimism”, one professional mentioned, however the query is what sort of deal can be acceptable to each side. 

We’re additionally studying . . . 

• Alex Soros: The chair of Open Society Foundations sits down with FT editor Roula Khalaf to debate his vision for the liberal megadonor his father created.

• Gaza ceasefire: Many Palestinians have returned to seek out solely sand, twisted metal and shredded concrete the place they used to reside.

• The good liberal shrug: Having supposedly fearful an excessive amount of about Trump final time, people are overcorrecting, writes Janan Ganesh.

Map of the day

Britain’s defence minister warned Russian President Vladimir Putin that “we won’t draw back from sturdy motion” after telling parliament {that a} Russian spy ship had been operating in UK waters for the second time since November. The vessel was detected within the English Channel after loitering over important undersea infrastructure.

Take a break from the information . . . 

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