ByteDance Secures Access to Thousands of Nvidia Chips Through Norwegian Data Center

ByteDance, the Chinese tech giant behind TikTok and other popular apps, has secured access to over 2,000 Nvidia B200 chips through a data center in Norway. This deal was made possible by a partnership with UK-based company Nscale, which built its business around this major contract with ByteDance's subsidiary Spring.

The contract, worth $24 million of Nscale's projected annual revenue of $33 million in 2025, granted Spring access to the Nvidia B200 chips at Nscale's Glomfjord, Norway data center. Despite being within legal bounds, this arrangement has raised concerns about regulatory and reputational risks for ByteDance.

The Financial Times reports that the deal exploits loopholes in the US export controls against China, which restrict Chinese access to advanced AI accelerators. As Washington continues to tighten these restrictions, companies like ByteDance face increasing scrutiny over their access to cutting-edge technology.