ByteDance Leads China's Tech Giants with $11 Billion AI Investment in 2024

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On Tue, 31 Dec, 4:01 PM UTC

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ByteDance, the parent company of TikTok, is set to invest $11 billion in AI and computing power in 2024, outpacing its Chinese competitors and signaling a major push in the AI race.

ByteDance's Massive AI Investment

ByteDance, the Chinese tech giant behind TikTok, is set to lead China's big tech spending with a staggering 80 billion yuan ($11 billion) investment in artificial intelligence and computing power in 2024 12. This significant investment underscores ByteDance's commitment to advancing its AI capabilities and maintaining its competitive edge in the global tech landscape.

Comparison with Competitors

ByteDance's investment dwarfs that of its major Chinese competitors. Baidu, Alibaba, and Tencent are reported to have invested a combined 100 billion yuan collectively in 2024, according to a research note from Zheshang Securities cited by the South China Morning Post 12. This disparity highlights ByteDance's aggressive push to dominate the AI sector in China.

Future Projections and AI Focus

The Beijing-based company, founded by Zhang Yiming, is not stopping at its 2024 investment. ByteDance is expected to double its capital expenditure to 160 billion yuan in 2025, with 90 billion yuan allocated specifically for computing power 12. While the exact allocation for AI was not specified, the substantial investment in computing infrastructure is set to accelerate progress within China's AI sector.

Global Context and Comparison

Despite the impressive figures, China's Big Tech firms still trail behind their U.S. counterparts in terms of AI spending. For instance, Microsoft's capital expenditure in 2024 reached $44.5 billion, according to the same research note 12. This comparison provides context for the global AI race and the scale of investments being made by tech giants worldwide.

ByteDance's AI Portfolio and Achievements

ByteDance's AI portfolio now includes around 20 distinct AI-driven projects, showcasing its significant push into artificial intelligence 12. One of its notable successes is the AI chatbot Doubao, launched in May, which has quickly become China's most popular AI chatbot. By November, Doubao had reached nearly 60 million monthly active users, competing with OpenAI's GPT-4 and excelling in areas such as reasoning, coding, and instruction-following 12.

Global Rankings and Impact

Globally, Doubao ranks as the second most popular AI product by monthly active users (MAUs), behind only OpenAI's ChatGPT, according to a November ranking from Aicpb.com 12. This achievement demonstrates ByteDance's growing influence in the global AI market and its potential to challenge established players.

Enhancing Core Platforms

ByteDance's expanding AI capabilities are poised to enhance its core platforms, including the short-video app Douyin (the Chinese counterpart of TikTok) and the news app Jinri Toutiao. These enhancements are expected to refine recommendation algorithms and search functionalities, potentially improving user experiences and engagement across ByteDance's ecosystem 12.

Reference

[1]

VnExpress International – Latest news, business, travel and analysis from Vietnam

|ByteDance leads China's big tech spending with $11 billion in 2024 - VnExpress International

[2]

VnExpress International – Latest news, business, travel and analysis from Vietnam

|ByteDance leads China's big tech spending with $11B in 2024 - VnExpress International
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