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

Good morning and welcome again. On right this moment’s agenda:

• ByteDance plans $12bn wager on AI chips

• Trump threatens Putin with extra sanctions

• China sees room to avert a commerce conflict with US

TikTok proprietor ByteDance plans to spend greater than $12bn on synthetic intelligence infrastructure this 12 months, betting on the cutting-edge expertise for brand spanking new development as its widespread video-sharing app comes beneath stress within the US.

The Beijing-based firm has budgeted Rmb40bn ($5.5bn) to accumulate AI chips in China in 2025, in line with two folks acquainted with the plans, which might double the quantity it spent final 12 months. The group additionally plans to take a position 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 a minimum of 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 all the way down to construct out its personal AI infrastructure to coach its basis mannequin, in addition to to implement AI features throughout its varied platforms.

Right here’s what else we all know in regards to the TikTok dad or mum’s plans.

Right here’s what else we’re maintaining tabs on right this moment:

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

• Thailand: A legislation permitting 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 anticipated price rise on Friday.

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

This Friday, be part of shopper editor Claer Barrett, author of the Kind Your Monetary Life Out publication collection, as she discusses easy methods to spend money on 2025 with different FT specialists. Register without cost.

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 succeed in an settlement quickly to finish the conflict in Ukraine. The Trump administration believes there are extra ways in which the US may 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, concentrating on a strong businessman linked to the jailed former prime minister Imran Khan. The developer stated fraud allegations by Pakistan’s anti-corruption watchdog are an try and “blackmail” him. Listed below are extra particulars.

3. Two Iranian cargo vessels carrying an important chemical ingredient for missile propellant will sail from China to Iran over the following few weeks, in line with intelligence from safety officers in two western international locations. Officers stated the chemical compounds had been being shipped to the Islamic Revolutionary Guard Corps, the elite arm of the Iranian army. Learn the total story.

4. Elon Musk poured chilly water on Stargate, a large US synthetic intelligence infrastructure venture introduced by Trump on Tuesday. “They don’t actually have the money”, the Tesla boss stated in regards to the $500bn initiative backed by OpenAI and SoftBank, in a uncommon break with the president. Right here’s how OpenAI’s chief government 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 competitors within the territory’s once-lucrative listings market the place enterprise has considerably slowed.

Information in-depth

Chinese language officers now hope it could be attainable to avert a second commerce conflict with the US, after Donald Trump didn’t levy rapid tariffs and hinted at a possible broader deal involving TikTok’s possession. There may be “cautious optimism”, one professional stated, however the query is what sort of deal could 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 imaginative and prescient for the liberal megadonor his father created.

• Gaza ceasefire: Many Palestinians have returned to search out solely sand, twisted metallic and shredded concrete the place they used to dwell.

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

Map of the day

Britain’s defence minister warned Russian President Vladimir Putin that “we will not shy away from robust action” after telling parliament {that a} Russian spy ship had been working in UK waters for the second time since November. The vessel was detected within the English Channel after loitering over crucial undersea infrastructure.

Take a break from the information . . . 

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