TikTok’s Chinese parent, ByteDance Ltd, is reportedly assembling significant computing power outside China using top Nvidia chips “to fuel its ambition of becoming a global artificial-intelligence leader”, Wall Street Journal reported on Thursday.

The report cited people familiar with the matter, saying ByteDance is working with Southeast Asian firm Aolani Cloud to deploy around 500 Nvidia Blackwell computing systems in Malaysia, which would include roughly 36,000 B200 chips, Reuters reported, quoting WSJ’s report.

The hardware, acquired via Aivres, could cost more than $2.5 billion if fully implemented, the report added.

Aolani currently operates with about $100 million in hardware, a spokesman reportedly told the WSJ.

According to the report, ByteDance intends to use the systems for AI research and development outside China and to meet growing global demand from its customers.

Reuters could not immediately verify the report, and Nvidia, ByteDance, and Aolani Cloud did not respond to requests for comment.

Citing a source, Reuters reported last month that the U.S. is willing to allow ByteDance to purchase Nvidia’s H200 chips, although the chipmaker has yet to agree to proposed conditions for their use.

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