- ByteDance significantly increased its AI business spending in the third and fourth quarters of last year, leading to a sharp contraction in its overall net profit margin.
- Its overseas business maintained strong growth, with international revenue jumping nearly 50% year-on-year in 2025.
ByteDance saw a massive decline in its 2025 net profit, plunging more than 70% year-on-year, primarily driven by the company's surging investments in artificial intelligence (AI) last year.
Securities Times reported the figures on Monday, stating that the TikTok parent company significantly ramped up its AI spending in the third and fourth quarters of last year, resulting in a notable contraction in its overall net profit margin.
Despite the pressure on overall profitability, the company's overseas operations maintained robust growth, with international revenue surging nearly 50% year-on-year in 2025.
This pace far exceeded the roughly 20% growth seen in its domestic market, pushing the overseas revenue share from 25% in 2024 to over 30%, hitting a record high.
Notably, TikTok Shop's gross merchandise volume (GMV) grew by nearly 70% year-on-year in 2025, serving as the main driver behind the rising share of overseas revenue, according to Securities Times.
To maintain a competitive edge in the fierce global AI race, the company launched a global recruitment drive early last month for over 7,000 interns, with a heavy focus on artificial intelligence and core research and development roles.
Furthermore, the company is utilizing innovative financial mechanisms to attract and retain top-tier talent in large language models.
In the fourth quarter of 2025, the firm piloted the "Doubao Long-Term Incentive Plan," establishing a unique virtual stock mechanism for its related large model businesses.
The company recently initiated its first share buyback, with the latest pricing for Doubao shares set at $13.08, representing a substantial 30.8% increase from the previous grant price of $10.
While continuing to double down on AI investments, the company is also divesting non-core assets to recoup funds and counter the cost pressures brought by rising global chip prices.
Saudi Arabia's Savvy Games Group agreed last month to fully acquire ByteDance's gaming unit, Moonton, for over $6 billion.
The deal, which reached an agreement on core terms in early 2026, marks a major strategic pivot for ByteDance as it fully focuses on its core AI strategy.
