According to people familiar with the matter, ByteDance's net profit in 2025 will fall by more than 70% year-on-year, and its net profit margin will also decline sharply. The background is that the company significantly increased its investment in AI business in the third and fourth quarters of last year.At the same time, ByteDance's overseas revenue will grow by nearly 50% in 2025, far exceeding the domestic growth rate of about 20%. The proportion of overseas business revenue has also increased from 25% in 2024 to more than 30%, setting a new record high.
It is reported that TikTok Shop’s GMV growth rate in 2025 will be close to 70% year-on-year, which is the main driving force for ByteDance’s increase in overseas revenue.
However, ByteDance did not comment on the above data.
In the past year, ByteDance has been making continuous moves in the AI field. Doubao Assistant has realized multi-modal generation, AI programming, agent interaction and other capabilities iterations. The Volcano Engine MaaS business has become the fastest growing sector, and its large model training efficiency and inference performance have firmly ranked first in the industry.
It is worth mentioning that in January 2025, it was reported that ByteDance would allocate more than 150 billion yuan ($20.64 billion) in capital expenditures in 2025, most of which would focus on artificial intelligence (AI).
By the end of 2025, people familiar with the matter revealed that ByteDance plans to invest 160 billion yuan (approximately US$22.74 billion) in artificial intelligence infrastructure construction in 2026.
