ByteDance Sees Revenue Growth but Declining Profits in H1, Large-Scale AI Investments Erode Profitability, Net Profit Drops to Around $20 Billion

BlockBeats News, September 16: According to a report by *The Information*, three informed sources revealed that ByteDance's net profit in the first half of this year fell by a single-digit percentage year-over-year to approximately $20 billion, while revenue grew by about 30% year-over-year to approximately $120 billion. During the same period, Meta's revenue also grew by 30% to $117 billion, bringing the two companies' revenue levels nearly on par. However, there remains a significant gap in market valuation: Meta's market cap is approximately $1.7 trillion, whereas ByteDance's valuation is estimated at $630 billion, according to secondary market tracking firm CapLight. ByteDance stands at a crossroads between scaling up and facing profit pressures. While its revenue saw robust growth in the first half of the year, large-scale investments in AI are eroding its profitability, leading to a rare decline in profits in recent years. The core driver of this profit decline is the sharp increase in AI-related expenditures. Recently, ByteDance completed a record-breaking $30 billion bank loan, with part of the funds expected to support its continuously expanding AI infrastructure investments. Meanwhile, TikTok's U.S. operations, following the completion of a data security architecture overhaul in January this year, are accelerating e-commerce expansion, providing significant support for overall revenue growth. [Original Article Link]