Business & MarketModels 🇨🇳 11.08.2026 09:02

ByteDance AI Drops Pretense: Charges 12% Tax and Stops Distillation, Betting Big on 5 Trillion

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ByteDance's AI division has reportedly begun charging a 12% tax on AI services and has stopped using knowledge distillation techniques. This move is part of a larger bet aiming at a 5 trillion yuan market, signaling a shift towards monetization and independence.
According to a report by 36 Kr, ByteDance's AI unit has stopped pretending and is now implementing a 12% tax on its AI services, while also abandoning the use of distillation for model training. This strategic decision is part of a bold gamble to capture a market valued at 5 trillion yuan. By charging a fee and ceasing distillation, ByteDance aims to differentiate itself and secure a stronger position in the competitive AI landscape. The move suggests a focus on proprietary development and revenue generation, marking a significant pivot in ByteDance's AI strategy.
Source: ByteDance Doubao (GNews) — original
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