TECH

ByteDance’s Profit Plunges 70% on Aggressive AI Spending

Published: Apr. 20, 2026 7:22 p.m. GMT+8

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ByteDance Ltd.’s net profit plunged more than 70% in 2025 as the company aggressively scaled up its artificial intelligence investments, even as the booming TikTok e-commerce business drove a nearly 50% surge in overseas revenue.

The Chinese technology giant disclosed the operational data for 2025 on Monday, revealing that domestic revenue grew nearly 20% in 2025 year-on-year. Overseas revenue, fueled by TikTok Shop, accounted for a record high of more than 30% of total revenue last year, up from 25% in 2024, Caixin learned from sources with knowledge of the matter.

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ByteDance 2025 net profit fell >70% per IFRS from non-operational costs; actual revenue/profit grew, overseas revenue up ~50% to >30% of total.
Douyin GMV matches Alibaba's Taobao/Tmall; TikTok Shop reached 400M users, ~$100B GMV, 5th largest globally.
2026 AI spend: 160B yuan (chips, models, talent), +50B infrastructure; 2024-2026 capex 390B yuan.

AI generated, for reference only

Who’s Who

ByteDance Ltd.: ByteDance Ltd.'s 2025 net profit plunged >70% due to AI investments, despite ~20% domestic revenue growth and ~50% overseas surge from TikTok e-commerce (now >30% of total revenue). Excluding non-operational factors, revenue/profit grew. TikTok Shop reached ~$100B GMV, 5th globally. 2026 AI spend: ~160B yuan.

Alibaba Group Holding Ltd.: ByteDance’s Douyin domestic gross merchandise value is broadly on par with Alibaba Group Holding Ltd.’s Taobao and Tmall platforms in China.