ByteDance Advances AI Smartphone Partnerships to Expand AIGC Reach
ByteDance is advancing negotiations with major hardware manufacturers, including vivo, Lenovo and Transsion Holdings, to pre-install artificial intelligence generated content (AIGC) plugins on their devices. The move represents a strategic shift by the TikTok parent company to secure user entry points and improve its standing in the AI execution layer.
Multiple employees at vivo confirmed that a partnership with ByteDance has been established, with specific details currently under discussion. ByteDance, vivo, Lenovo, and Transsion did not respond to requests for comment regarding the collaboration.
The push for external partnerships comes as vivo seeks alternatives to bolster its AI capabilities. The handset maker previously explored deep AI model cooperation with Tencent but failed to reach an agreement due to commercialization hurdles, specifically regarding token costs. Lagging progress in its internal AI initiatives also prompted vivo to consider collaboration with ByteDance.
According to people familiar with the matter, ByteDance’s strategy prioritizes creating new traffic monetization channels over immediate business growth. The company aims to integrate smartphone manufacturers into its revenue ecosystem through traffic distribution and membership subscription models. Early discussions suggest a framework where ByteDance would waive customization fees or token sales cuts, instead offering manufacturers a share of secondary traffic revenue.
ByteDance plans to target mid-range smartphones priced above RMB 2,000 yuan (US$277). The strategy involves an initial rollout on new device releases, followed by expansion to existing models via over-the-air (OTA) system updates. The company aims to scale this initiative to between 150 million and 200 million units before directly challenging other internet giants. Sources indicated that ByteDance will likely focus its AI phone deployment on overseas markets, leveraging its existing strengths in international channels.
Internally, ByteDance has prioritized the project, dedicating over 500 staff members each to its systems and labeling departments. While the company successfully engaged some manufacturers, it faced resistance elsewhere; OPPO reportedly rejected a similar cooperation proposal.
ByteDance previously stated that its "Doubao" AI team was in talks with various phone makers, though it denied plans to manufacture its own hardware. To date, the only officially disclosed partner is ZTE. Additionally, Meizu has publicly invited the Doubao team for deeper cooperation on AI smartphone development.