Exposure to byte adjustments AI resource center to shift from consumer products to enterprise services.

By the first half of the year, Douyin had over 200 million daily active users, but its daily revenue was less than one million yuan, mainly from e-commerce commissions. By May of this year, based on the publicly available API prices of the Volcano Engine, combined with the gross profit margin of Douyin's large models and Douyin user usage habits, it is estimated that Douyin's daily computational cost reaches tens of millions of yuan. The report also pointed out that two months ago, senior officials from ByteDance visited Anthropic, and shortly after returning to China, the company began adjusting its AI resource allocation strategy, shifting its focus from products like Douyin aimed at the general public to products aimed at servicing enterprises. The report stated that ByteDance's Seedance has proven that the direction of enterprise services is viable. Currently, Seedance's annualized revenue has reached 2 billion US dollars, with monthly revenue exceeding 1 billion yuan, almost covering the computational costs generated by Douyin. The majority of its revenue comes from enterprise clients, however, Seedance's revenue growth has recently slowed.