- Doubao, ByteDance’s AI chatbot, surpasses Baidu’s Ernie Bot in downloads and boasts a larger base of monthly users on iOS in China.
- ByteDance’s CEO has prioritized AI development, resulting in Doubao’s success with nearly 9 million downloads and over 4 million monthly active users.
- ByteDance disclosed Doubao’s 26 million monthly active users across mobile and PC platforms, reflecting broader trends in the Chinese market.
- Leading Chinese tech firms invest heavily in AI, with ByteDance, Alibaba, Tencent, and others channeling funds into emerging AI entities.
- Despite competition, monetization in China’s AI sector remains challenging due to the dominance of free-to-use services and US trade restrictions on AI accelerator chips.
Main AI News:
Doubao, the AI-driven chatbot introduced in August, outstripped Baidu’s Ernie Bot in downloads last year and currently boasts a larger base of monthly users on iOS in China, according to Sensor Tower data. Despite Ernie’s initial rapid ascent in the country, ByteDance has surged ahead, with competitors now closing in.
Beijing-headquartered ByteDance has prioritized catching up in AI, with co-founder and CEO Liang Rubo instilling a sense of urgency at the company renowned for its globally popular short-video platforms, TikTok and Douyin. Doubao emerged as the most downloaded AI chatbot on Apple Inc.’s iOS, amassing nearly 9 million downloads in the year leading up to April, with Ernie following closely at 8 million, as per Sensor Tower data. Moreover, Doubao boasts the highest number of monthly active users, exceeding 4 million.
Although the analysis excludes Android mobile app stores, it reflects broader trends in the Chinese market. ByteDance recently disclosed that Doubao now commands 26 million monthly active users across mobile and PC platforms. In contrast, OpenAI’s ChatGPT mobile app claims 6.7 million monthly users in the US, according to Similarweb.
Leading Chinese tech firms from Alibaba Group Holding Ltd. to Tencent Holdings Ltd. have aligned with Silicon Valley counterparts such as Microsoft Corp. in making substantial investments in generative AI. Alongside developing proprietary foundational models, they are channeling hundreds of millions of dollars into emerging entities like Baichuan and Zhipu AI.
The burgeoning competition in China’s AI services market encompasses fledgling startups like Beijing-based Moonshot AI, which introduced its Kimi bot, highlighting “the sector’s low barrier to entry,” as noted by Bloomberg Intelligence analysts, including Robert Lea. They stated, “Rampant competition in China’s AI sector — which remains dominated by free-to-use services — combined with US trade restrictions on advanced AI accelerator chips will likely continue to hamper monetization efforts for all.“
Among China’s top five AI chatbots, Ernie stands alone in offering a paid subscription tier, yet its revenue from in-app purchases and subscribers has totaled less than $500,000 since its March 2023 launch, as per Sensor Tower. Baidu anticipates significant revenue growth from advertising and cloud services, projecting that Ernie will contribute several billion yuan in additional revenue this year.
Conclusion:
ByteDance’s emergence as the leader in China’s AI chatbot market signifies a shift in dynamics, with its Doubao outpacing competitors and demonstrating the company’s commitment to AI innovation. The heavy investments from Chinese tech giants indicate a robust and competitive market, albeit with challenges in monetization. As AI continues to evolve, companies must navigate this landscape strategically to capitalize on emerging opportunities.
