1 hr ago
ByteDance Revenue Accelerates as AI Spending Pressures First-Half Profit
ByteDance owns TikTok and makes money from ads, livestreams and online shopping.
In the first half of the year, its revenue grew to about $120 billion.
However, its profit fell to about $20 billion.
This happened partly because ByteDance is spending heavily to develop artificial-intelligence tools.
The company is trying to compete with other AI companies in China and the United States.
TikTok’s business also benefited after some U.S. regulatory concerns became less difficult.
ByteDance set up a joint venture to operate TikTok in the United States.
It also received approval for TikTok to be used again on federal government devices.
Banks agreed to lend the company nearly $30 billion for general needs, including AI research.
ByteDance’s first-half revenue rose more than 30% to $120 billion, according to people familiar with the matter.
Net profit declined to $20 billion as the company increased spending on artificial-intelligence research and development.
Growth was driven by international advertising, livestreaming and TikTok’s e-commerce business.
TikTok’s U.S. regulatory uncertainty eased after a joint venture was established and a federal-device restriction was lifted.
A global bank syndicate agreed to lend ByteDance $29.6 billion, partly supporting its AI investment.
- Who
- ByteDance, TikTok’s parent company.
- What
- ByteDance reported faster revenue growth but lower first-half profit amid increased AI spending.
- Where
- ByteDance’s international businesses, including TikTok’s operations in the United States.
- When
- During the first half of the year; the article also refers to actions taken in January and the preceding month.
- Why
- Revenue increased through advertising, livestreaming and e-commerce, while AI investment reduced profitability.
Key facts
- First-half revenue
- More than $120 billion, up over 30%.
- First-half net profit
- About $20 billion.
- Previous annual revenue
- $200 billion last year, up 29%.
- Previous annual net profit
- $42 billion last year, up 27%.
- AI financing
- A global bank syndicate agreed to lend ByteDance $29.6 billion.
- Employee stock valuation
- ByteDance raised its restricted-stock-unit valuation 5% to $241.35 per share.
- Company valuation estimates
- The employee-share valuation implied more than $400 billion, while an earlier private sale valued ByteDance above $600 billion.
Sources
Related news
Zhang Yiming Overtakes Gautam Adani as Asia’s Richest Person
TikTok Agrees to $400 Million US Child Privacy Settlement
MPA, ByteDance Reach Agreement Curbing IP Use in Deepfakes
Alibaba Profit Plunges as AI Spending Weighs on Shares
Brazil fines TikTok owner ByteDance over teen data violations
Nvidia Earnings Smash Estimates as AI Infrastructure Demand Surges
SoftBank Shares Plunge as AI Safety Warnings Rattle Investors
BRICS Billionaire Club: Richest Tycoons Across Member Nations
