According to foreign media reports, ByteDance's revenue grew by 30% in the first half of 2026 compared to the same period last year. However, due to increased investment in the artificial intelligence sector, its net profit decreased year-on-year, with the net profit margin dropping to about 16.7%, continuing a downward trend that has persisted since 2023, when the net profit margin was 26%, and 21% in 2024. ByteDance has not commented on the above data.

The pressure on profits highlights how AI investments are putting pressure on this large technology company. ByteDance has developed its own large language model and video model, operates Douyin, the most popular mobile chatbot application in China, and is currently expanding its AI cloud business, offering its self-developed models to enterprise customers; its Seedance video generation model is among the top tier in the global AI video market.

Overseas operations have become the core growth engine. Although TikTok still contributes most of the revenue, overseas revenue from TikTok now accounts for more than 30% of total revenue, reaching a new historical high. Previously, overseas revenue grew by nearly 50% in 2025, far exceeding the domestic revenue growth of around 20%. The overseas share rose from 25% in 2024 to over 30%, and this trend continued into 2026.

To support its continuously rising AI investments, ByteDance recently obtained a loan of about $30 billion from banks, which is the largest loan in its history. At the same time, its biggest domestic competitor is also actively raising funds: Alibaba is seeking to raise about $10 billion through a large-scale share issue to support AI infrastructure; Zhipu AI recently launched a $5 billion equity and convertible bond issuance to provide funding for AI-related investments. The AI competition among Chinese tech giants has entered a capital-intensive phase.