Greater Odds For Apple And ByteDance As $22 Billion AI Expansion Fuels Doubao In China

ByteDance is boosting its 2025 capital expenditure to $22 billion, aiming to expand AI capacity for Doubao, one of the most popular generative models after ChatGPT. Industry analysts believe Apple may partner with ByteDance in China to accelerate Apple's AI capabilities for iPhone users.

ByteDance Ramps Up 2025 AI Expansion With $22 Billion Investment

ByteDance has promptly pounced on the opportunity to fulfill this demand by increasing its 2025 capital expenditures to a staggering $22 billion, which is equivalent to 160 billion yuan, as reported by the Economic News Daily.

The purpose of the investment is to acquire artificial intelligence data center real estate, which will be equipped with the additional capability to manage billions of requests on a daily basis.

Apple Likely to Pursue ByteDance Partnership Amid Generative AI Push

In light of the fact that ByteDance takes the field of generative artificial intelligence very seriously, it is highly probable that Apple would wish to enter into a collaboration with the company as soon as feasible.

This year, ByteDance's capital expenditures were 80 billion yuan, which is virtually similar to the amount of money that was invested by Baidu, Alibaba, and Tencent, three of the most prominent internet companies in China.

Doubao's Global Growth Positions ByteDance as Key Player for Apple

The generative artificial intelligence model known as "Doubao" developed by ByteDance ranks second to the firm that is responsible for ChatGPT in terms of the number of users around the world. This makes it the natural choice for Apple to utilize when entering the Chinese market.

Analysts have indicated that Apple Intelligence's capabilities and reach are now restricted, but that when increased, it has the potential to result in an iPhone supercycle. This is in light of the fact that the California-based company has reached a market capitalization of forty trillion dollars, WCCFTECH points out.

As a result of the fact that China is the largest smartphone market in terms of volume, bringing Apple Intelligence to the region is of the utmost importance to the firm. This indicates that the company will most likely make an effort to speed up the process of negotiating a deal with ByteDance.