ByteDance unit taps 2,304 Nvidia B200 GPUs in Norway via Nscale cloud deal
The Norway hosting setup exposes how Chinese-backed firms can lawfully tap top Nvidia chips abroad despite U.S. export limits.
IPO filings from UK-based cloud provider Nscale reveal that a ByteDance affiliate, Spring (SG) Pte Ltd, has been renting access to 2,304 Nvidia B200 GPUs hosted in Nscale’s Glomfjord, Norway data center via a $24 million contract. The setup exploited gaps in U.S. export controls by letting a Chinese-owned group use cutting‑edge Nvidia accelerators hosted outside China, while staying technically within the rules. Nscale financed these GPU purchases with a $105 million loan from Macquarie plus $35 million in equity, then quickly secured a strategic deal in which Jensen Huang committed over $660 million and Nvidia agreed to large future chip purchases, later raising its commitments above $2 billion and backing an $860 million Texas lease. Those commitments enabled Nscale to land massive long‑term cloud deals reportedly worth $44 billion with Microsoft and $45 billion with Anthropic, which should shrink Spring’s share of future revenue below 20%. Because of ByteDance’s involvement, Macquarie required monitoring of Spring’s GPU usage and third‑party due diligence to reduce legal and sanctions risk around U.S. export rules.
Why it matters
This arrangement shows how Chinese-owned companies can still reach advanced Nvidia hardware by renting it from overseas data centers rather than importing chips into China, highlighting a gap between the intent and the letter of U.S. export controls. It also pushed Nscale into rapid expansion, drawing in major financing from Macquarie, deep supply and investment commitments from Nvidia, and huge cloud contracts with Microsoft and Anthropic that will dilute ByteDance’s role in Nscale’s business over time, while triggering extra monitoring and due diligence on ByteDance’s usage of the GPUs.
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Sources
- Tom's Hardware