Nvidia Corp. (NASDAQ:NVDA) is drawing attention after reports that TikTok parent ByteDance is planning a major overseas deployment of the company’s newest AI chips, highlighting how Chinese tech firms are expanding computing capacity outside China amid export restrictions.
ByteDance Plans Major Nvidia Chip Deployment In Malaysia
ByteDance is reportedly preparing a large AI hardware buildout in Malaysia through a cloud partner, The Wall Street Journal reported on Friday.
The plan involves about 500 Nvidia Blackwell computing systems, equal to roughly 36,000 B200 chips, supplied through a Southeast Asian firm called Aolani Cloud.
People familiar with the matter told the news outlet that, if the plans move forward, the hardware involved could cost more than $2.5 billion.
Aolani is sourcing servers from Aivres, a company that builds systems using Nvidia chips.
An Aolani spokesperson told WSJ the company currently operates with about $100 million worth of hardware.
Offshore Data Centers Help Bypass Export Limits
ByteDance intends to use the overseas computing capacity for AI development and international customers, according to the report.
The move comes as U.S. export restrictions limit the sale of some advanced AI chips directly to China, pushing Chinese companies to seek computing power abroad through third-party data centers.
An Nvidia spokesperson told the media outlet that export rules allow cloud infrastructure to be built and operated outside restricted countries such as China.
Aolani’s status as an Nvidia “tier-1 cloud partner” may also help the company obtain newer chips more quickly.
The firm has reportedly leased Malaysia-based servers using Nvidia H100 chips to ByteDance since February 2025.
WSJ also reported that ByteDance has explored using AI servers with more than 7,000 B200 chips at a data center in Indonesia, while the company continues to expand AI hiring in the U.S.
Strong China Demand Meets Supply And Policy Challenges
Nvidia continues to pursue its China strategy as demand for advanced AI chips remains strong despite export controls and supply constraints.
CEO Jensen Huang has expressed confidence in demand for the company’s H200 AI chips in China, even though some shipments remain held up by regulatory scrutiny.
Chinese tech companies have reportedly placed orders for more than 2 million H200 chips for 2026, far exceeding Nvidia’s current supply capacity.
Some firms have turned to black-market hardware or domestic alternatives such as Huawei’s Ascend chips, often paying higher prices.
To meet rising demand, Nvidia has asked Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) to increase production capacity.
However, a recent report said Nvidia has shifted some manufacturing capacity at Taiwan Semiconductor away from H200 chips and toward next-generation Vera Rubin hardware, which could limit near-term H200 sales in China.
NVDA Price Action: Nvidia shares were up 0.45% at $183.97 during premarket trading on Friday, according to Benzinga Pro data.
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