By TikTok’s parent company, ByteDance, has become China’s top investor in 2024, spending an estimated 80 billion yuan (US$11 billion) on technology, including AI.
Rival companies Baidu, Alibaba, and Tencent collectively invested 100 billion yuan this year, according to the South China Morning Post, citing Zheshang Securities.
ByteDance, founded by Zhang Yiming, benefits from strong cash flow generated by Douyin, the Chinese version of TikTok. The company plans to double its capital spending to 160 billion yuan in 2025, with 90 billion yuan dedicated to computing power, although specific AI investment figures weren’t disclosed.
Despite China’s Big Tech increasing their AI spending, they still lag behind U.S. giants.
For example, Microsoft’s capital expenditure reached US$44.5 billion in 2024, the research notes.
Zheshang Securities emphasizes ByteDance’s significant investment in computing infrastructure, a strategic move designed to propel China’s AI sector forward. This investment not only strengthens ByteDance’s position as a leader in artificial intelligence but also underscores the company’s commitment to staying competitive in a rapidly evolving tech landscape. By allocating substantial resources to cutting-edge technologies, ByteDance aims to establish a robust foundation for future innovations that can redefine user experiences and drive global influence.
The company’s expanding AI capabilities are expected to bring notable improvements to its core platforms, including the immensely popular short-video app Douyin and the widely used news app Jinri Toutiao. These advancements are focused on optimizing recommendation algorithms to deliver more personalized content and refining search functionalities for faster, more accurate results. By leveraging AI to enhance user engagement and satisfaction, ByteDance is setting a benchmark for how technology can transform everyday digital interactions.
A testament to ByteDance’s AI success is its chatbot, Doubao, which launched in May and quickly gained traction as China’s leading AI chatbot. By November, Doubao had amassed nearly 60 million monthly active users, a remarkable achievement in such a short time. Competing directly with OpenAI’s GPT-4, Doubao demonstrates exceptional capabilities in reasoning, coding, and following complex instructions, positioning it as a powerful tool for both casual users and professionals seeking AI-driven solutions.
On a global scale, Doubao has secured its place as the second most popular AI product by monthly active users, only behind OpenAI’s ChatGPT. This ranking, reported by Aicpb.com in November, highlights ByteDance’s ability to develop AI products that resonate with a broad audience, reflecting the company’s potential to challenge established players in the international market.
Beyond Doubao, ByteDance has developed an impressive portfolio of approximately 20 AI-driven projects, signaling its unwavering dedication to pushing the boundaries of artificial intelligence. These initiatives span various domains, from enhancing user experiences on its digital platforms to exploring new applications for AI in fields such as content creation, education, and business solutions. ByteDance’s comprehensive approach to AI development underscores its ambition to lead not only in China but also on the global stage, driving innovation and shaping the future of technology.
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