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ByteDance Sets Ambitious $20 Billion Budget For 2025, Focusing On AI Expansion

by THEFUTURE.TEAM

January 23, 2025

ByteDance, the parent company of TikTok, is planning a substantial capital investment of over 150 billion yuan ($20.64 billion) in 2025, with a significant portion directed towards advancing artificial intelligence, sources familiar with the matter revealed.

Approximately half of this budget will be allocated overseas, primarily for AI infrastructure projects such as data centers and networking technology. This strategic expenditure is expected to benefit major players like Huawei Technologies, Cambricon Technologies, and U.S. chipmaker Nvidia, according to the sources, who wished to remain anonymous due to the sensitive nature of the information.

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ByteDance, however, dismissed the claims, stating that the details regarding its spending are inaccurate, without providing further clarification.

In response, Nvidia declined to comment, while Huawei and Cambricon did not immediately respond to requests for comment.

This investment comes as ByteDance aims to consolidate its position as a leader in AI technology. Despite starting 2024 behind its competitors, the company now boasts over 15 independent AI applications, surpassing rivals such as Baidu and Tencent. Notable among its creations is the popular chatbot, Doubao. The spending plan is also set to strengthen ByteDance’s AI capabilities abroad, especially at a time when the future of TikTok remains uncertain in the United States, where a 75-day delay in the enforcement of a potential ban on the app was recently signed into effect by U.S. President Donald Trump.

While ByteDance, a privately held company, does not typically disclose financial figures, the new spending strategy represents a significant step forward. The Financial Times had earlier reported that the company plans to invest $12 billion in AI infrastructure, with additional funds allocated to secure Nvidia chips outside China, where the U.S. imposes restrictions on high-tech exports.

ByteDance is already the largest consumer of Nvidia’s H20 AI chips, which were specifically designed for the Chinese market in light of the restrictions. Additionally, it is Nvidia’s top client in Asia for cloud-based chips, sources have indicated.

In China, ByteDance’s AI applications include Doubao, which boasts 75 million active users, as well as the text-to-video tool Jimeng, the image generator Xinghui, and platforms like Kouzi and Maoxiang for chatbot creation and emotional support. Internationally, ByteDance has adapted its leading apps for foreign markets, with Doubao being known as Cici and Jimeng as Dreamina outside China.

ByteDance recently updated its flagship AI model, also called Doubao, positioning it to compete with Microsoft-backed OpenAI’s advanced reasoning products.

Despite these ambitious plans, ByteDance’s AI investments remain modest compared to its American counterparts. In 2024, Alphabet, Google’s parent company, allocated $50 billion for chips, data centers, and related expenses, while Microsoft spent $55.7 billion in its fiscal year, with a considerable portion devoted to AI infrastructure.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

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Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.