Chinese tech giant ByteDance gained access to Nvidia chips by renting computing power from British AI infrastructure startup Nscale, according to reports. The arrangement allowed a ByteDance subsidiary to bypass U.S. export restrictions on advanced semiconductors. Nscale, a UK-based company, provided cloud computing resources that included Nvidia hardware, enabling ByteDance to continue AI development efforts despite sanctions.

The move highlights how companies are navigating geopolitical tech controls through third-party infrastructure providers. Reports indicate the setup involved significant scale, with references to thousands of chips and substantial financial commitments. The situation underscores ongoing tensions in the global semiconductor supply chain and the lengths to which firms go to maintain access to critical AI technology.

Nscale has not publicly commented on the specific arrangements, but its role as a provider of AI-optimized cloud services positions it at the center of this workaround. The case reflects broader patterns of adaptation in response to U.S. chip export controls targeting China’s AI ambitions.