ByteDance's 2026 AI server CapEx to reach RMB 150 billion, with significant external GPU purchases and in-house chip development plans

ByteDance's H200 GPU orders for China were significantly oversubscribed, with an inventory of 500,000 units versus demand for 6 million chips from top-tier internet companies, IDCs, and government clients. Current H200 supply is restricted to "tail-end" customers without state or government affiliation and who have not received official notices. H200s can only be deployed overseas, making domestic purchases for Chinese players impractical. ByteDance plans RMB 150 billion in AI server CapEx for 2026, targeting a 3x increase in daily token usage (from 60 trillion to 180 trillion) by end-2026. The company is focusing on multimodal foundation models for Douyin AI content generation in 2026. ByteDance also detailed significant external GPU purchases from Cambricon (RMB 27 billion), Hygon (RMB 13 billion), and Ascend (RMB 10 billion), along with 50,000 chips each from Kunlun and Moore Threads. ByteDance plans to launch its in-house GPU in 2026, aiming for one new generation annually with at least 1 million chips per generation. In-house chips are estimated to cost RMB 30,000 per chip, substantially less than externally procured options like the Ascend 910C at RMB 120,000-130,000 per chip.