Tag Archives: bytedance

The Rise of Bytedance: From Tiktok Parent to AI Powerhouse

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Baite Dance, a Chinese internet giant, has developed some of the world’s most popular apps: Tiktok and in China, Douyin and Toutiao.

Tiktok claims 170 million users in the US, while around 700 million people use the domestic version of Douyin and 300 million use Toutiao in China. Bytedance gathers data on user interactions to improve user experience and content recommendation.

Bytedance is investing in artificial intelligence infrastructure, including data centers in China and Southeast Asia, to enhance its AI systems. Tiktok has faced bans in multiple countries over national security concerns.

Bytedance’s data usage has raised concerns, leading to Washington lawmakers pressuring Tiktok to sell its US business. In China, Bytedance’s data capabilities have expanded beyond social media into advanced AI technology.

Bytedance is investing heavily in infrastructure, spending billions on data centers and equipment. Chinese tech companies are encouraged to focus on cutting-edge technologies, including semiconductors and artificial intelligence.

Last year, Bytedance invested around $11 billion in infrastructure such as data centers, networking equipment, and computer chips.

The Biden administration’s rules aim to restrict Chinese companies’ access to certain chips. Bytedance has found ways to acquire computing power needed for AI training, despite these restrictions.

Bytedance’s investments have made it a popular AI app in China, with services like the chatbot Doubao attracting millions of users. Bytedance demonstrates the connection between app ecosystems and AI efforts.

Bytedance launched Volcano Engine in 2021, offering addictive technologies and tools for analyzing algorithms to other companies.

Bytedance’s expertise in creating filters for apps like Douyin and Tiktok has led to collaborations with companies for developing technology like movement tracking for smart appliances.

GAC Group and Mercedes-Benz are among the companies using Bytedance’s Volcano Engine for data management and in-vehicle technology.

Bytedance, a leader in AI technology, is focused on achieving artificial general intelligence, similar to human intelligence.

Many Chinese companies are investing in AI projects, but only a few have the resources to advance the technology. Bytedance is among those leading the way in AI innovation.

Claire Who Contributed research from Seoul.

Source: www.nytimes.com

TikTok’s parent company, ByteDance, argues that the US’s alleged discrimination against the popular app is unconstitutional

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ByteDance, a Chinese tech company, has filed new legal documents challenging the US government’s “unconstitutional discrimination against TikTok.” These documents also reveal details about failed negotiations regarding a ban on the platform.

A legislation signed by President Joe Biden in April requires ByteDance to sell TikTok’s U.S. assets by Jan. 19 or face a ban. ByteDance argues in its filing that such a sale is “technically, commercially, and legally impossible.” The company accuses the US government of not taking settlement negotiations seriously after 2022.

TikTok, in a lawsuit, states, “Never before has Congress silenced so much speech with a single act.”

The proposed ban reflects long-standing national security concerns from US lawmakers who fear China could exploit the app to access Americans’ data or spy on them. While the Biden administration prefers ByteDance to sell TikTok instead of an outright ban, the company claims it’s not a viable option.

The bill would prevent app stores like Apple and Google from featuring the app unless ByteDance sells it. It would also prohibit internet hosting services from supporting TikTok without a sale, effectively banning its use in the US.

In its filing, ByteDance’s lawyers outline the company’s negotiations with the US government, which abruptly ended in August 2022. The company also shared a redacted draft national security agreement aimed at protecting TikTok’s US user data.


The proposed agreement includes a “kill switch” for the US government to halt TikTok’s use in the US if it doesn’t comply. The US has also requested TikTok to move its source code out of China.

TikTok’s lawyers criticized the administration for favoring shutting down TikTok in the US instead of working on a practical solution to protect US users. The Justice Department defended the law, saying it addresses national security concerns while respecting constitutional constraints.

TikTok and ByteDance filed a lawsuit in the United States Court of Appeals for the District of Columbia Circuit on Sept. 16. The outcome of the case could influence the government’s use of new powers against foreign-owned apps.

TikTok argues that separating businesses is not feasible and claims the law violates free speech rights. The platform’s content creators maintain that there is no imminent national security threat, as the law allows TikTok to operate for the remainder of the year.

Source: www.theguardian.com

Sources indicate that ByteDance plans to shut down TikTok in the US instead of selling it, according to reports

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If ByteDance exhausts all legal avenues to fight a bill banning TikTok from U.S. app stores, the Chinese company would prefer to shut down the app rather than sell it, according to four sources.

The core algorithms that TikTok relies on are crucial to ByteDance’s overall operations, making it highly unlikely that the app powered by these algorithms would be sold, sources close to the parent company said.

Despite TikTok’s popularity with over 1 billion users, it still operates at a loss and represents a small portion of ByteDance’s total revenue and daily active users. In a worst-case scenario, the parent company would choose to shut down TikTok in the US rather than sell it to an American buyer.

Shutting down TikTok would have minimal impact on ByteDance’s business, allowing the company to maintain its core algorithms, as per unidentified sources not authorized to speak to the media.

ByteDance confirmed in a statement on Toutiao that it has no plans to sell TikTok, responding to speculations suggesting otherwise. The company is not considering selling TikTok’s US business without its recommendation algorithm.

TikTok CEO Shou Zi Chew expressed optimism about blocking the bill signed by President Joe Biden, banning the app used by 170 million Americans. The company believes it will win the appeal against the ban.

The bill, passed by the US Senate, raises concerns about potential access to Americans’ data by China or surveillance through apps. The deadline for TikTok’s sale is set for January 19, but it could be extended if ByteDance shows progress.

ByteDance’s revenue increased from $80 billion in 2022 to nearly $120 billion in 2023, with TikTok’s US daily active users accounting for 5% of the company’s total DAUs worldwide, sources familiar with the matter revealed.

The core algorithm shared by TikTok and ByteDance’s domestic apps like Douyin is a valuable asset that ByteDance is not willing to sell to a competitor. Separating the algorithms from TikTok’s US assets would be complex, making it an unlikely option, sources added.

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Former US Treasury Secretary Steven Mnuchin’s interest in forming an investor group to acquire TikTok may not attract buyers for ByteDance’s US assets, excluding the algorithm, sources noted.

Investors valued ByteDance at $268 billion when they offered to repurchase about $5 billion worth of stock in December.

Source: www.theguardian.com

House Passes Bill Requiring ByteDance, Owner of TikTok, to Sell or Risk US Ban | Ticktock

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The House of Representatives passed a bill on Wednesday mandating that ByteDance, the owner of TikTok, must sell the social media platform or face a complete ban in the United States.

The vote resulted in overwhelming support, with 352 members of Congress voting in favor and only 65 voting against. The bill, which was swiftly approved in committee last week, gives ByteDance 165 days to divest from TikTok. Failure to do so would result in app stores like the Apple App Store and Google Play being legally prohibited from hosting TikTok or providing web hosting services for ByteDance-managed applications.

Following the vote, TikTok CEO Shou Zi Chew expressed disappointment and stated that the company is doing everything possible to protect the platform’s integrity and enforce their legal rights.

Chew emphasized TikTok’s efforts to secure data and shield the platform from external influences, raising concerns about the implications of the bill on other social media companies, creators, and small businesses.

The decision in the House of Representatives marks a significant development in the ongoing debate surrounding TikTok’s alleged data collection practices and potential political censorship. Despite assurances from TikTok that they do not share U.S. user data with the Chinese government, challenges persist, including past bans and legal battles.

The future of the bill in the Senate remains uncertain, as some Democrats have raised free speech concerns and proposed broader social media regulations to address foreign influence concerns without singling out TikTok specifically.

The White House supports the bill, aiming to provide a pathway for ByteDance to sell TikTok and mitigate national security risks associated with Chinese ownership. The authors of the bill stress that the goal is not to ban TikTok outright but to facilitate its sale to circumvent the block in the U.S.

While the outcome of the bill continues to unfold, TikTok and its supporters remain steadfast in advocating for the platform’s survival, raising uncertainties about China’s approval of a potential sale and the timeline for such a transaction.

As the debate continues, concerns persist about the impact of the bill on other Chinese-owned platforms in the U.S., such as Tencent’s WeChat. The discussions reflect broader efforts to address national security and privacy considerations in the social media landscape.

Reuters contributed to this report

Source: www.theguardian.com