ByteDance posted strong top-line growth in the first half of the year, but profit slipped as spending on artificial intelligence climbed, according to a report by The Information citing three people familiar with the matter. The company’s revenue rose about 30% year over year to roughly $120 billion, while net profit declined by a single-digit percentage to about $20 billion.
The report said the sharp rise in AI-related spending was the main factor behind the earnings decline, a rare drop in profit after years of expansion. It added that ByteDance recently completed a roughly $30 billion bank loan, described as the largest of its kind, with part of the funds expected to support continued investment in AI infrastructure.
The same report compared ByteDance with Meta Platforms. Meta’s revenue also increased 30% in the first half, reaching $117 billion, leaving the two companies with nearly similar revenue scale. Their valuations remain far apart, however: Meta’s market capitalization stands at about $1.7 trillion, while secondary market trading tracker CapLight estimates ByteDance’s valuation at $630 billion. The report also said TikTok’s U.S. business has been accelerating its e-commerce push after completing a data security architecture restructuring in January, helping support overall revenue growth.
ByteDance’s net profit fell by a single-digit percentage year over year in the first half to about $20 billion, while revenue rose roughly 30% to around $120 billion, according to The Information, which cited three people familiar with the matter.
Revenue kept growing, but profit came under pressure
The report said ByteDance is facing a period in which scale is still expanding but profitability is under strain. First-half revenue remained strong, yet heavy investment in artificial intelligence started to weigh on earnings, leading to what the report described as a rare profit decline after years of growth.
It identified the sharp increase in AI spending as the main driver behind the drop in profit.
Revenue is now close to Meta’s, but valuation is not
Meta reported the same 30% revenue growth in the first half, reaching $117 billion. On that basis, the two companies are now operating at nearly the same revenue scale.
The valuation gap remains wide. Meta’s market capitalization is about $1.7 trillion, while ByteDance is valued at $630 billion, based on an estimate from secondary-market trading tracker CapLight.
Loan financing and AI infrastructure
The report also said ByteDance recently completed a roughly $30 billion bank loan, described as the largest ever of its kind. Part of the proceeds is expected to support the company’s expanding AI infrastructure buildout.
At the same time, TikTok’s U.S. business has been speeding up its e-commerce expansion after completing a data security architecture restructuring in January this year, providing an important contribution to overall revenue growth.
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