ByteDance releases Doubao 2.0 AI chatbot to defend lead in China's competitive market

Reviewed byNidhi Govil

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ByteDance has launched Doubao 2.0, an upgraded version of China's most widely used AI chatbot with 155 million weekly active users. The release positions the TikTok creator for the 'agent era' where AI models perform complex real-world tasks, while fending off pressure from DeepSeek and Alibaba in the intensely competitive Chinese AI chatbot market.

ByteDance Launches Doubao 2.0 Ahead of Lunar New Year

ByteDance has rolled out its Doubao 2.0 AI model, upgrading the country's most used AI app just ahead of the Lunar New Year holiday

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. The timing is strategic, as Chinese tech companies race to generate buzz during the holiday when hundreds of millions of Chinese gather with families in their hometowns

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. The release comes one year after DeepSeek shocked the global tech industry with its low-cost AI models, catching competitors off-guard during last year's Spring Festival

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. This time, domestic rivals are better prepared, vying to launch new models with more consumer appeal

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Source: Japan Times

Source: Japan Times

TikTok Creator ByteDance Pivots to AI Leadership

While ByteDance soared to global attention with TikTok, the Beijing-based company has been positioning itself as a major player in the artificial intelligence market

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. The company has built China's most popular AI chatbot, Doubao, which has accumulated more than 100 million daily users since its inception in 2023

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. According to QuestMobile, Doubao leads all AI chatbot apps in China with 155 million weekly active users, significantly ahead of DeepSeek's 81.6 million

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. This dominance in the competitive Chinese AI chatbot market demonstrates ByteDance's successful diversification beyond social media.

Source: Reuters

Source: Reuters

Doubao 2.0 AI Model Targets the Agent Era

ByteDance positioned Doubao 2.0 for the "agent era," where AI models perform complex real-world tasks rather than only answer questions

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. The model's pro version includes complex reasoning and multi-step task execution capabilities that match OpenAI's GPT 5.2 and Google's Gemini 3 Pro, while reducing usage costs by roughly an order of magnitude, according to the company

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. ByteDance emphasized that "this cost advantage will become even more crucial as real-world, complex tasks involve large-scale inference and multi-step generation that will expend a huge amount of tokens"

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. This focus on cost efficiency echoes the broader trend sparked by DeepSeek's demonstration that competitive AI models can be developed at a fraction of traditional costs.

Fending Off Pressure in China's Intensifying AI Race

The release of Doubao 2.0 helps ByteDance defend against mounting pressure from domestic competitors in the artificial intelligence market

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. Alibaba announced on February 6 that it was spending 3 billion yuan ($400 million) on a coupon giveaway campaign to attract more users to its Qwen AI app, allowing them to purchase food and drink directly in the chatbot

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. This aggressive marketing led daily active users on Qwen to skyrocket from 7 million to 58 million, just 23 million shy of Doubao's figures on the same day, according to QuestMobile

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. ByteDance also released Seedance 2.0, a video-generation AI model on Thursday, which went viral on Chinese social media and drew praise overseas on platforms like X, including from owner Elon Musk

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. The release ahead of a highly anticipated new DeepSeek model signals ByteDance's determination to prevent another surprise disruption in the market

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