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ByteDance makes first major move to monetise China’s AI boom 

by Business a.m.
June 25, 2026
in Technology
ByteDance makes first major move to monetise China’s AI boom 

ByteDance, the Chinese technology company behind TikTok, has launched a paid subscription service for its flagship artificial intelligence chatbot, Doubao, marking a major step in its efforts to generate revenue from one of China’s fastest-growing AI platforms.

The move makes Doubao the first major domestic AI chatbot in China to introduce a subscription-based model, distinguishing it from competing services such as DeepSeek, Alibaba’s Qwen and Tencent’s Yuanbao, which continue to offer their products free of charge.

Since its debut in 2023, Doubao has emerged as one of China’s most widely used AI applications, attracting more than 300 million monthly active users and establishing itself as a leading player in the country’s increasingly competitive AI market.

Announcing the new offering on social media, ByteDance said the professional version of Doubao would provide users with higher usage limits and access to more advanced capabilities.

Under the subscription model, paying customers will be able to carry out a wider range of practical tasks directly within the application, including organising local files, creating websites and generating PowerPoint presentations. Users on the free tier will continue to have access to basic search functions but will face restrictions on resource-intensive features such as image and video generation.

Industry analysts say the decision reflects the growing challenge of balancing rapid user growth with the rising costs associated with operating large-scale AI systems.

Li Chengdong, founder of Beijing-based technology consultancy Dolphin, said Doubao’s explosive growth has significantly increased the company’s computing expenses.

“Doubao’s average daily token usage has increased more than a thousandfold compared with its launch, and computing power costs rise exponentially with user scale,” Li said.

The introduction of paid services mirrors a strategy already adopted by leading Western AI developers. Companies such as OpenAI, through its chatbot ChatGPT, along with Anthropic and its Claude platform, and Google with Gemini, have long relied on premium subscription plans to monetise advanced AI capabilities.

However, analysts note that China’s AI landscape remains markedly different, with providers prioritising user acquisition over revenue generation amid fierce competition.

Zhang Yi, founder of research firm iiMedia, said domestic AI companies are still focused on expanding their user bases rather than charging for services.

“The competition among domestic AI players is heated and users have yet to get used to paying for services,” Zhang said.

According to him, the race to capture market share has slowed the commercialisation of AI products in China compared with international markets, where subscription-based models have become more widely accepted.

The rollout of Doubao’s premium service also comes as ByteDance intensifies its investment in artificial intelligence, an area that has become central to the company’s long-term growth strategy.

Speaking recently at a technology industry gathering, Liang Rubo,  ByteDance chief executive officer, said the company has increasingly concentrated its resources on artificial intelligence initiatives.

“Over the past few years, we have been concentrating on narrowing the scope of our business and focusing on our AI venture,” Rubo said.

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