Chinese tech giant ByteDance’s profit fell more than 70% as the company leaned aggressively into AI, underscoring the financial challenges facing the country’s tech scene amid intensifying domestic competition.
ByteDance, which owns TikTok and its Chinese counterpart Douyin, spent much more on computing power, AI infrastructure, and research, according to Chinese media reports.
The country’s tech players have put a greater emphasis on increasing user numbers rather than making money, a strategy recently illustrated by AI firms promoting hefty Lunar New Year giveaways as incentives to sign up.
Still, ByteDance celebrated a nearly 50% surge in total overseas revenue last year, thanks to the strength of its TikTok Shop operations across a host of new markets.