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

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

• ByteDance plans $12bn guess on AI chips

• Trump threatens Putin with extra sanctions

• China sees room to avert a commerce battle 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 in style video-sharing app comes below strain within the US.

The Beijing-based firm has budgeted Rmb40bn ($5.5bn) to accumulate AI chips in China in 2025, based on two folks conversant in 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 firms casual steerage to purchase not less than 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 numerous platforms.

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

Right here’s what else we’re holding tabs on right now:

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

• Thailand: A legislation 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 fall and Nidec report earnings.

This Friday, be part of shopper editor Claer Barrett, author of the Kind Your Monetary Life Out e-newsletter sequence, as she discusses methods to put money into 2025 with different FT consultants. 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 succeed in an settlement quickly to finish the battle 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, concentrating on a robust 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 following few weeks, based on intelligence from safety officers in two western international locations. Officers mentioned the chemical substances have been being shipped to the Islamic Revolutionary Guard Corps, the elite arm of the Iranian navy. Read the full story.

4. Elon Musk poured chilly water on Stargate, an enormous US synthetic intelligence infrastructure challenge 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 battle with the US, after Donald Trump didn’t levy instant tariffs and hinted at a possible broader deal involving TikTok’s possession. There’s “cautious optimism”, one professional mentioned, however the query is what sort of deal could be acceptable to either 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 dwell.

• The good liberal shrug: Having supposedly frightened 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 is not going to 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 essential undersea infrastructure.

Take a break from the information . . . 

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