TikTok Parent ByteDance Overtakes Baidu In AI Chatbot Race In China: Report

TikTok parent ByteDance Ltd. has reportedly surpassed Baidu Inc BIDU in the quest to provide China’s leading AI chatbot.

Since its launch in August, ByteDance’s AI chatbot, Doubao, has outperformed Baidu’s Ernie Bot in both downloads and active monthly users on iOS in China, reported Bloomberg.

Doubao achieved nearly 9 million downloads on Apple Inc’s AAPL iOS platform in the year to April, while Ernie Bot garnered 8 million, the report cited Sensor Tower data.

Doubao also leads in monthly active users, surpassing 4 million. This data reflects a broader trend in the Chinese market, as ByteDance recently reported 26 million monthly active users for Doubao across both mobile and PC platforms. 

Meanwhile, the research does not include Android mobile app stores. Despite Ernie’s initial rapid success, ByteDance has now claimed the top spot.

Beijing-based ByteDance, known globally for its popular short-video platforms TikTok and Douyin, has made AI development a top priority. 

Co-founder and CEO Liang Rubo has emphasized the urgency of advancing AI technologies within the company. This strategic focus has helped ByteDance edge out competitors in the rapidly growing AI chatbot market.

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China’s AI sector is fiercely competitive, with tech giants like Alibaba Group Holding Ltd. BABA and Tencent Holdings Ltd. TCEHY heavily investing in generative AI. 

The report mentions that these companies, alongside ByteDance, are betting on AI’s future by developing in-house models and investing in emerging AI startups like Baichuan and Zhipu AIed. 

Despite the intense competition, monetizing AI services remains a challenge. Analysts from Bloomberg Intelligence, note that free-to-use services dominate the market, and U.S. trade restrictions on advanced AI chips hinder monetization efforts.

Ernie Bot, among the top five AI chatbots in China, offers a paid subscription but has generated less than $500,000 in in-app purchases since its launch, the report highlighted

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Image by Tang Yan Song via Shutterstock