ByteDance expands AI production by 160 billion yuan, and Lenovo is expected to win more server orders

On the 23rd, it was reported that ByteDance has decided on a capital expenditure plan for the field of artificial intelligence in 2026. The total expenditure is expected to reach 160 billion yuan, an increase of 6.7% compared to 2025, which once again confirms that the global AI industry is in a golden cycle of rapid expansion.

According to people familiar with the matter, about half of ByteDance's total expenses will be used to purchase advanced semiconductors to develop artificial intelligence models and applications. The person familiar with the matter added that although there is still uncertainty about whether leading Chinese companies can obtain Nvidia chips, ByteDance has set a budget of 85 billion yuan for next year's artificial intelligence processors.

With the expansion of the AI business on such a large scale, demand for hardware devices such as servers has exploded, and Lenovo Group, as an important participant in the global server market, will undoubtedly be one of the most direct beneficiaries. As the world's leading smart hardware and computing infrastructure service provider, Lenovo has long been an important partner of ByteDance in the field of computing power. In particular, in terms of server supply, the two sides have formed a stable and deep partnership. Of ByteDance's current capital expenditure of 160 billion yuan, in addition to semiconductor procurement, the remaining huge capital will focus on infrastructure fields such as AI computing center construction and computing power cluster construction. This will inevitably lead to a significant increase in server demand. As a core supplier, Lenovo is expected to directly accept large orders and further expand its market share.

The collaboration between Lenovo and ByteDance has been around for a long time and continues to grow. In June of this year, the “Trusted Hybrid Computing Solution” jointly created by Lenovo and Volcano Engine, a subsidiary of ByteDance, was officially launched. This solution is based on Volcano Engine's AI confidential computing core technology, combined with Lenovo's deep accumulation in the field of hardware security, to achieve full-link security protection for transmission and processing of user data between terminals and clouds, setting a new benchmark for data security in the AI era. This cooperation not only complements the technical advantages of the two parties, but also establishes an ecological foundation for “end-edge-cloud-network-smart” full-stack collaboration, making Lenovo no longer a simple hardware supplier in ByteDance's computing power system, but also a strategic partner deeply involved in the construction of its AI security architecture.

According to analysis by industry insiders, ByteDance has greatly increased its semiconductor procurement budget this time, which is expected to further drive demand for Lenovo's high-end server, storage and data center solutions. As the scale of AI models continues to expand and application scenarios continue to deepen, leading Internet companies will continue to invest in computing power infrastructure. With its deep technology accumulation, complete product line, and close cooperation with global technology companies, Lenovo is expected to further consolidate its leading position in the AI server market.

At the level of industry trends, as the global AI industry enters a golden cycle of rapid expansion, computing power infrastructure has become a core competitive barrier, and demand in the server market continues to be strong. According to IDC data, China's AI server market will maintain rapid growth over the next three years, and ByteDance, as one of the most aggressive buyers of computing power in the world, will further boost demand in related industry chains with a capital expenditure of 160 billion yuan. As ByteDance's core server supplier, Lenovo will not only directly benefit from the revenue growth brought about by this large-scale purchase, but will also use the cooperative case of this benchmark customer to strengthen its market position in the AI server field and lay the foundation for developing more customers in the industry.

In Lenovo Group's financial report for the second quarter of fiscal year 2026, revenue for the quarter increased 15% year-on-year to 146.4 billion yuan, a record high for the fiscal quarter and significantly exceeded general market expectations; adjusted net profit increased 25% year-on-year to 3.66 billion yuan, and the net profit growth rate far exceeded revenue growth, demonstrating the Group's operational resilience and strategic certainty to move forward steadily in a complex environment. At the same time, Lenovo's AI server revenue achieved high double-digit growth in the fiscal quarter, laying the scale foundation for future deliveries. In terms of enterprise infrastructure, Lenovo is improving and even reinventing the different business models of large enterprise customers and small to medium enterprise customers.

Looking ahead, ByteDance's demand for servers will maintain a steady and strong growth trend as it continues to cultivate in the AI field. Meanwhile, with its comprehensive strength in server R&D, production, delivery, and technical services, and a deep foundation of cooperation with ByteDance, Lenovo Group is likely to win more orders in ByteDance's server procurement, further consolidating its leading position in the server market and achieving continuous growth in revenue and profit. The in-depth cooperation between the two sides is also expected to inject new vitality into the development of the entire AI industry ecosystem and bring more innovative results and changes.