Bytedance Reportedly Tops Chinese Nvidia Chip Buyers – But Now It Can't Use Them

• According to a report by The Information, ByteDance currently has a large inventory of Nvidia AI chips it can’t use.
• Chinese regulators have reportedly told the company it can’t use the chips in its new data centres. 
• The report adds to the growing narrative that China is pushing domestic chip alternatives over Nvidia’s.

ByteDance, the parent company of TikTok, was reportedly the largest Chinese buyer of Nvidia (NVDA) chips in 2025, but recent regulatory restrictions in China have left the company holding chips it can’t use.

According to a report from The Information, citing sources, ByteDance purchased more Nvidia chips than any other Chinese firm last year. The report added that Bytedance did so as it was racing to secure computing power for its billion-plus user base amid fears that U.S. supply could be restricted under the Trump administration. However, instead of Washington, Beijing emerged as a blocker. 

China Says Bytedance Can’t Use Nvidia Chips

The report said Chinese regulators have recently prohibited the company from using Nvidia chips in newly built data centers. The move leaves Bytedance with a large inventory of high-end chips it cannot currently utilize, creating both operational and financial challenges.

Simply put, Bytedance stockpiled Nvidia GPUs in anticipation of potential bottlenecks – and now it can’t use them. On Stocktwits, retail sentiment around Bytedance, which is not a publicly traded company, was in ‘extremely bullish’ territory, accompanied by ‘high’ levels of chatter.

Meanwhile, Nvidia’s stock edged 0.4% lower in pre-market trade. Retail sentiment around the AI bellwether also remained in ‘extremely bullish’ territory alongside ‘extremely high’ levels of chatter over the past day. 

Beijing Pushes Domestic Chip Priorities

The report comes after the Cyberspace Administration of China (CAC) reportedly told companies like ByteDance and Alibaba (BABA) in September to cease testing and ordering the RTX Pro 6000D chip, which Nvidia designed for the Chinese market. 

According to the report, China’s restrictions are part of a broader policy to reduce reliance on U.S. chips while prioritizing domestic options from companies such as Huawei and Cambricon Technologies.

Nvidia CEO Jensen Huang has lobbied to be able to sell advanced chips in China. According to U.S. Commerce Secretary Howard Lutnick, negotiations between the U.S. and China include  easing export licenses for advanced AI hardware.

Read also: Bitcoin, XRP, ADA Struggle Ahead Of Thanksgiving – Analyst Warns There’s No Clear Catalyst For Q4

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