Bytedance’s TikTok Strategy Dominates China’s Consumer AI Scene
ByteDance Ltd. is recognized internationally as the troubled parent company of TikTok. At home, however, it has subtly claimed the title of China’s leading consumer artificial intelligence app while defying all trends — a remarkable achievement that provides insights into the global tech competition. As generative AI continues to establish its worth and productivity advantages for businesses, individuals across the globe have already adopted it for a range of purposes, from information gathering to entertainment. Breaking into the consumer market is emerging as one of the most straightforward routes to profitability in a sector that is in dire need of cash: According to various estimates, 70% of OpenAI’s revenue is derived from individuals who pay for ChatGPT subscriptions. ByteDance’s Doubao app — an all-in-one chatbot, photo and video tool — has emerged as China’s leading mobile AI platform. In October, Doubao saw over five times the number of downloads compared to DeepSeek, with 11.4 million downloads against 2.2 million, as per reports. Since surpassing its competitor in April, Doubao has consistently topped the charts each month.
However, what matters most is its ability to retain its audience. Separate data indicates that Doubao had 172 million monthly active users as of September — a crucial metric for investors to evaluate both scale and engagement. DeepSeek’s app achieved 145 million users, while Tencent Holdings Ltd.’s Yuanbao trailed with just under 33 million. Doubao achieved a notable position, being ranked fourth on Andreessen Horowitz’s list of the top 50 Gen AI mobile apps worldwide. The stickiness achieved here is a significant accomplishment in China’s densely populated and fiercely competitive AI landscape. What distinguishes it is its emphasis not only on text, but also on seamless AI-driven voice, image, and video experiences. ByteDance’s underlying Seed 1.6 vision model, which powers the app, now leads OpenCompass’ Multi-Modal Leaderboard — a platform that assesses an AI’s capability to interpret various types of inputs. OpenAI’s GPT-5 stands at the forefront of the large language-model ranking. Consumers are indicating that they desire more than just conversation; they seek to interpret, generate, and edit visuals as well.
Equally important is ByteDance’s core specialty: consumer-friendly design, ensuring that the technology remains accessible even for grandparents. The transition from TikTok to Douyin showcases the company’s consistent ability to create applications that engage users and encourage their return. DeepSeek and other Chinese AI startups have demonstrated excellence in modeling; however, they continue to face challenges regarding user experience. Doubao facilitates easy sharing of content from the app to various platforms, a crucial strategy for engagement stemming from the social networking era. For everyday AI users seeking to look up recipes or edit photos, these enhancements are just as significant — if not more so — than the foundational model benchmarks. DeepSeek may demonstrate superior capabilities in intricate reasoning and research endeavors, yet Doubao has successfully discovered how to engage a broad audience through its approachable platform, aptly named after a steamed bean bun. Taking a step back, what’s particularly noteworthy about ByteDance’s AI success is its departure from China’s open-source zeitgeist. ByteDance is aligning itself more closely with OpenAI’s strategy: it provides certain open-source models, yet retains its most advanced technology as proprietary.
In the long run, if ByteDance’s underlying AI models can demonstrate a significant advantage over the free-to-download alternatives, it may provide the company with a lasting commercial edge. Investors are certainly taking note of all of this. According to the sources, the private company has recently reached a valuation of $480 billion, following the acquisition of a block of shares by a Chinese investment firm. This would position it closely to OpenAI, the world’s most valuable startup with a $500 billion valuation. Nevertheless, Doubao’s supremacy is anything but assured. Tech powerhouse Alibaba Group Holding Ltd. has recently embarked on its most significant venture into the consumer market with the relaunch of its Qwen app, achieving 10 million downloads in its inaugural week. In addition to attracting consumers’ attention, the subsequent challenge will be to determine effective monetization strategies. Subscription models have thrived in the West, yet they have encountered significant challenges in China’s competitive landscape, which remains largely governed by free-to-use services. In the last year, Chinese AI applications collectively achieved approximately $500,000 in sales on Apple’s mobile iOS platform, while OpenAI’s ChatGPT alone garnered $1.7 billion, as per reports. Given the significant scrutiny on TikTok from Washington, it’s difficult to envision Doubao receiving a seamless introduction to more lucrative overseas markets. Nonetheless, its remarkable success conveys a distinct message. In the worldwide competition for AI users, the app that prevails won’t necessarily be the “smartest,” but rather the one that proves to be the most engaging. While intelligence might be considered overrated, addiction certainly is not.
