ByteDance Reportedly Shifts AI Focus from Consumer Apps to Enterprise Services

Deep News08:16

According to reports, ByteDance's consumer AI application Doubao has surpassed 200 million daily users but generates less than 1 million yuan in daily revenue, primarily from e-commerce commissions. Meanwhile, estimates based on public API pricing from Volcano Engine, the gross margin of Doubao's large model, and user habits suggest the app's daily computing power costs amount to tens of millions of yuan.

The report also indicates that following a visit by senior ByteDance executives to Anthropic approximately two months ago, the company began adjusting its AI resource allocation strategy. The focus is shifting away from mass-market products like Doubao towards offerings aimed at serving enterprise clients.

ByteDance's enterprise service platform, Seedance, is cited as evidence that this enterprise-focused direction is viable. Seedance has reportedly achieved an annual recurring revenue (ARR) of $2 billion, with monthly revenue exceeding 1 billion yuan, nearly enough to cover the computing costs generated by Doubao. The vast majority of Seedance's revenue comes from corporate customers, although its growth rate has recently shown signs of deceleration.

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