ByteDance to invest $614 mil. in computing center in China amid high AI demand

Bytedance To Invest $614 Mil

 A logo of ByteDance is seen at the company's headquarters in Singapore, Sept. 7, 2023. AFP-Yonhap

A brand of ByteDance is seen on the firm’s headquarters in Singapore, Sept. 7, 2023. AFP-Yonhap

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ByteDance, the guardian firm of TikTok and Douyin, is about to speculate 4.5 billion yuan (US$614 million) in a brand new computing middle within the metropolis of Datong, in northern Shanxi province, as China’s most beneficial unicorn boosts computing energy to accommodate its in style synthetic intelligence (AI) providers.

The expertise large, recognized for its in style brief video apps, has been aggressively increasing within the AI sector. Its ChatGPT-like service Doubao has turn into considered one of China’s main AI platforms, and the corporate final month unveiled updates for a spread of AI fashions and merchandise.

A doc revealed on the Shanxi authorities web site confirmed the approval of the Volcano Cloud Taihang Computing Centre II Part undertaking. Operated by ByteDance-controlled Volcano Cloud (Datong) Expertise, the undertaking will cowl 205,013 sq. meters (2,206,742 sq ft), equal to the world of almost 30 soccer pitches.

The event will embrace six two- story knowledge middle buildings, one six- story built-in facility, in addition to different supporting infrastructure. The middle is anticipated to deal with 15,604 12-kilowatt server cupboards and 510 community cupboards. The provincial authorities first launched an in depth blueprint for the undertaking in July.

Excessive-performance computing facilities are essential for coaching massive language fashions (LLMs), managing in depth knowledge processing, and making certain the scalability and effectivity of AI-driven providers. Regardless of US export restrictions which have restricted entry to the world’s superior semiconductors, China’s Huge Tech companies are leveraging native chips to boost computing capability.

At the same time as Doubao’s recognition as surged, with 51 million lively customers, ByteDance has not but introduced any plans to monetize the AI service, though it’s expensive to coach LLMs.

ByteDance’s computing middle undertaking is positioned in Guangling county’s Financial Growth Zone Huge Knowledge Park in japanese Datong. Though not among the many province’s most economically developed areas, the area has been actively selling its huge knowledge business lately.

Based on native authorities paperwork, the primary section of the computing middle entails an funding of about 2.8 billion yuan. This section contains 4 knowledge middle buildings and supporting services. Development started in Might 2023 and is nearing completion.

ByteDance established Volcano Cloud (Datong) Expertise in December 2022, and it presently has registered capital of two.36 billion yuan, in response to Tianyancha, a Chinese language company knowledge tracker. Knowledge from China’s Ministry of Pure Sources exhibits that the corporate in December acquired greater than 13 hectares of land in Guangling for 59.12 million yuan.

Shanxi, historically recognized for its coal business, has lately targeted on increase its huge knowledge sector. Based on the China Academy of Info and Communications Expertise’s Computing Energy Index, Datong ranked third within the nation final 12 months for computing energy, following Langfang and Zhangjiakou in Hebei province.

A neighborhood media report in October revealed that by 2024, the Volcano Taihang Computing Centre had reported cumulative investments of 1.4 billion yuan, accounting for 89.4 % of the economic funding within the Guangling Financial Growth Zone.

Learn the total story at SCMP.

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