ByteDance is currently undergoing a transformation that extends well beyond TikTok. The company is leveraging its expertise and resources to take the lead in the AI race, initially in China and then on a global scale.
Why it matters. ByteDance’s strategy has the potential to reshape the global technology landscape. According to the Financial Times, the Internet company has become Nvidia’s largest customer in China. In addition, it’s said to attract the country’s top AI talent.
Massive data processing and recommendation algorithms are at the core of TikTok. Interestingly, its experience in these areas is now a competitive advantage for ByteDance in the age of AI.
Context. Zhang Yiming, the ByteDance founder and China’s richest person, views AI as the next battleground for technology. However, his vision goes beyond chatbots. He wants to develop artificial general intelligence that can match human cognitive abilities. As a result, the company is investing billions of dollars in infrastructure and recruiting talent from industry giants such as Alibaba.
Strategic approach. ByteDance is pursuing a dual strategy. It’s launched the Doubao AI chatbot for the Chinese market and the Cici AI model for international markets. Both tools use the same algorithm with different data sets. This approach allows the company to navigate the regulatory constraints in both regions, similar to how it runs TikTok and Chinese equivalent Douyin simultaneously.
In detail. ByteDance has repurposed TikTok’s infrastructure for AI deployment. The company has data centers in Malaysia and access to H100 chips outside of China, which enables it to maintain advanced operations in both markets.
It’s worth noting that there’s a possibility the U.S. might ban TikTok if ByteDance doesn’t sell the platform by January 2025. Meanwhile, Douyin is reaching a saturation point in China. In this context, AI emerges as both a vision for the future and a crucial strategic lifeline for the company.
What’s next? If ByteDance achieves its goal, it could become the first Chinese tech giant to compete globally in the AI sector. Its experience with TikTok in data management and algorithms will be crucial. However, as a Chinese company, it may face increased scrutiny.
ByteDance’s transformation suggests the upcoming technology battle will be waged in the field of AI, even among companies coming from different sectors. In fact, transitioning from a different activity with access to the vast amount of data it’s collected on TikTok could provide ByteDance with a significant advantage.
Image | Nik
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