ByteDance bets on AI to drive growth beyond TikTok

• ByteDance pushes into AI as Doubao tops 100 million users.
• Analysts link the change to AI’s rise and TikTok pressure.

Pressure on TikTok’s global operations is coinciding with a stronger push by its parent company, ByteDance, to build a larger presence in artificial intelligence, signalling how the Chinese tech firm is trying to expand beyond social media into what it sees as the next major computing platform.

The Beijing-based company has been investing heavily in AI tools and talent, while also growing the reach of its chatbot Doubao and newer creative software like the Seedance video generator. The effort reflects a broader attempt to reduce reliance on TikTok as regulatory scrutiny continues in major overseas markets.

According to reporting by AFPByteDance’s chatbot Doubao has surpassed 100 million daily active users since its launch in 2023, placing it among the largest AI services by use. The system is said to process more than 50 trillion tokens each day, a measure of how much text and data flows through the model. By comparison, Google said in October that it handles over 1.3 quadrillion tokens per month, or roughly 43 trillion per day, highlighting how ByteDance is approaching the scale of global competitors.

AI seen as the next major interface

ByteDance executives appear to view artificial intelligence as central to the company’s long-term direction. CEO Liang Rubo said last month that the firm believes AI “would become an even more important application than web search,” according to AFP.

Industry analysts say this change reflects both opportunity and necessity. Charlie Dai, vice-president and principal analyst at Forrester, told AFP that ByteDance’s move is “a deliberate evolution from social media toward an AI-native model.” He added that ongoing political and regulatory pressure surrounding TikTok has helped accelerate that transition.

The video-sharing platform has faced repeated scrutiny in the US and Europe over concerns ranging from user data handling to content design. Earlier this month, the European Commission said TikTok’s “addictive features” breached online content rules and warned the company to change its design or risk fines of up to six% of ByteDance’s global annual revenue, AFP reported.

In the US, fears that TikTok could be used to collect data on Americans or spread propaganda led to threats of a nationban. Following months of negotiations, a majority-American-owned joint venture was created in January to run TikTok’s US operations, with ByteDance retaining a stake of less than 20%, according to AFP.

Growing use cases at home

While TikTok remains ByteDance’s most visible global product, its AI tools are already being used in China. Rocky Lee, a cross-border seller from Xi’an, told AFP he relies on Doubao and other AI tools for product research, market analysis, and writing sales scripts.

“We used to have more than a dozen people in our team. Now I reckon maybe four to five people are sufficient,” Lee said.

Such examples reflect how AI assistants are moving beyond chat functions into daily business workflows. Analysts see this as part of a wider trend in which companies use AI systems to automate routine tasks and support decision-making.

Chen Yan, an AI industry analyst at QuestMobile, told AFP that ByteDance’s investment in AI is “a well-considered decision in response to the evolving circumstances,” adding that the company needs “to seek out the next generation of productivity,” as growth from TikTok becomes harder given its already large user base.

Heavy spending on chips and talent

The company’s strategy is backed by major investment in computing capacity and recruitment. AFP reported that ByteDance was Nvidia’s largest Chinese client in 2024, underscoring the scale of its demand for advanced chips. The firm plans to spend billions of dollars on AI microchips and infrastructure in 2026.

ByteDance is also competing aggressively for engineers and researchers. Industry headhunter Shen Wei told AFP that the company sometimes offers salaries two or three times the market average to attract top AI talent, while maintaining one of the largest AI teams in China’s tech sector.

Some industry insiders believe ByteDance is taking one of the most assertive approaches to AI among Chinese companies. Shen Qiajin, founder of interactive content platform ideaFlow, told AFP that ByteDance is “taking the all-in approach with AI” and is “the most aggressive player in the market.”

Global expansion may face familiar obstacles

Despite strong domestic growth, ByteDance’s AI services may encounter challenges asimilar to those faced by TikTok. Concerns about data governance and political tensions could shape how quickly the company can expand internationally.

Charlie Dai of Forrester noted that overseas markets may present tougher conditions because Western AI firms already understand local regulations and user expectations better, AFP reported. Competition is also intensifying in China, where companies like Tencent and Alibaba have promoted their own chatbots heavily, pushing them to the top of Apple’s free app rankings during the Lunar New Year period.

At the same time, ByteDance must still prove that large AI services can generate stable revenue. A Doubao staff member told Chinese tech outlet The Late Post that “the real challenge for Doubao is only coming after it has surpassed 100 million daily active users,” pointing to the difficulty of turning rapid growth into profit.

A change that mirrors the wider tech industry

ByteDance’s push into AI reflects a broader change in the tech sector, where companies are racing to build assistants, creative tools, and automated systems that could reshape how people search and work online.

The stakes are especially high for ByteDance. Expanding into AI offers a path to future growth and less reliance on a single global platform. Yet the same political scrutiny that shaped TikTok’s trajectory may also influence how far its AI ambitions can reach beyond China.

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