TECH

ByteDance Unveils New AI Video Model, Sparking Rally in Chinese Tech Stocks

Published: Feb. 10, 2026 1:02 p.m. GMT+8

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The debut of “Seedance 2.0” marks a significant technical leap for the TikTok owner as it intensifies its rivalry with Kuaishou Technology in the generative AI space. Photo: VCG

ByteDance Ltd. has launched an upgraded artificial intelligence (AI) video model that is drawing acclaim from high-profile content creators for its hyper-realistic visuals while simultaneously triggering a surge in related technology stocks in China.

The debut of “Seedance 2.0” marks a significant technical leap for the TikTok owner as it intensifies its rivalry with Kuaishou Technology in the generative AI space, though the advancement has immediately sounded alarms regarding potential deepfakes and the unauthorized use of user data for training.

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ByteDance launched Seedance 2.0, an advanced AI video model praised for lifelike visuals and multi-shot storytelling, intensifying competition with Kuaishou’s Kling model.
The release sparked a surge in Chinese AI stocks and drew attention from entertainment industry leaders, but raised concerns about deepfakes, privacy, and copyright risks.
Kuaishou’s Kling generated over $20 million in revenue in December; experts predict further major AI video technology leaps by 2026.

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Who’s Who

ByteDance Ltd.: ByteDance Ltd. is a Chinese multinational internet technology company, owner of TikTok. They recently launched "Seedance 2.0," an upgraded AI video model. This model generates hyper-realistic visuals and sound, leading to acclaim from content creators but also concerns about deepfakes and data privacy. It has also boosted related tech stocks in China and intensifies their rivalry in the generative AI space.

Kuaishou Technology: Kuaishou Technology is a rival to ByteDance in the generative AI space. Its Kling model is a significant competitor to ByteDance's Seedance. Kuaishou recently released an update, Kling 3.0, which includes smart storyboarding and multi-subject handling. Kuaishou's AI video generation product, Kling, generated over $20 million in revenue in December, indicating a substantial commercial potential for these AI tools.

COL Group Co. Ltd.: COL Group Co. Ltd. (300364.SZ) is a Chinese technology company. Its stock experienced a significant surge, hitting its daily trading limit on Monday and continuing to rise on Tuesday, following the launch of ByteDance's upgraded AI video model, Seedance 2.0. This indicates investor confidence in companies related to the booming AI sector in China.

IReader Technology Co. Ltd.: IReader Technology Co. Ltd. (603533.SH) is a Chinese company whose stock surged in response to ByteDance's launch of Seedance 2.0. Along with COL Group Co. Ltd., its stock hit daily trading limits and continued to rise, indicating investor excitement in the AI sector.

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What Happened When

June 2025：: Earlier versions of Seedance were launched, laying the groundwork for stability and audio sync.

December 2025：: Earlier versions of Seedance were launched, laying the groundwork for stability and audio sync.

December 2025：: Kuaishou’s Kling AI video generation product generated over $20 million in revenue.

Late December 2025：: Wu Di, head of intelligent algorithms at ByteDance’s Volcano Engine, told Caixin that AI image and video generation would see one or two more massive leaps in 2026.

January 13, 2026：: Kuaishou disclosed Kling's December 2025 revenue figures.

Early February 2026：: Kuaishou released the Kling 3.0 update.

Monday, February 9, 2026：: Seedance 2.0 (Bytedance's upgraded AI video model) launch, drawing wide attention from the entertainment industry and causing a surge in related technology stocks in China; both Feng Ji and MediaStorm post public reviews about Seedance 2.0 on this date.