Chinese tech giant ByteDance has reportedly invested more than $1 billion to acquire Graphics Processing Units (GPUs) from Nvidia in securing critical infrastructure for cloud service and AI. Another undisclosed company with cloud computing operations has also placed orders valued at least RMB 1 billion. Surprisingly, the purchase of ByteDance alone amounts to almost the total number of commercial GPUs sold by Nvidia in China last year.
Why the need for GPUs due to cloud service and AI demand?
The high level of data processing involved in cloud services has necessitated the acquisition of high-quality technology.
Cloud services taking AI usage to greater heights require GPUs for more computation and higher efficiency
The level of computing power capability required by ByteDance, which operates popular social media platform TikTok, and its assemblage of users necessitated the company’s decision to source for GPUs and cloud service infrastructure from Nvidia. This deal serves as another successful market expansion for Nvidia, which has an increasing demand for GPUs worldwide due to the constant data-intensive requirement from various industries.
Source: Shanghaiist
