ByteDance CEO Upset With Employees for Missing Out on AI

It’s getting hot in China’s tech scene. Longtime big players like Alibaba, Tencent, and JD.com are feeling the pressure from emerging companies like PDD Holdings, the parent company of Pinduoduo and Temu, and the returning giant Baidu. These firms are capitalizing on the shifting e-commerce landscape and the advent of AI. Even social media trendsetter ByteDance, creator of popular short-video apps Douyin and TikTok, is starting to sweat.

The CEO of ByteDance, Liang Rubo, recently voiced concerns about the company’s ability to keep up with the rapid pace of change in the tech space. His worries revolve around perceived employee disinterest in external changes and delayed reactions to new trends, such as ChatGPT, the widely recognized chatbot launched by OpenAI.

To illustrate his point, he shared an incident where a task initially projected to require 1,000 days was reduced to merely 15 days after a thorough review. He suggested that such slow progress could lead ByteDance down a path toward mediocrity.

The tech race isn’t confined to the United States; China too is in a rush to embrace generative AI. Baidu has been leading the charge with its ERNIE chatbot, which it claims is on par with OpenAI’s GPT-4 model. No one wants to be left behind, leading to a surge in AI services from Alibaba, Tencent, JD.com, and various startups.

Last year, ByteDance threw its hat into the ring with its own chatbot, Doubao. However, controversy arose when ByteDance allegedly breached OpenAI’s terms of service by using its technology to train Doubao, resulting in a suspended account.

In other news, Tencent’s CEO and co-founder, Pony Ma, expressed disappointment over his company’s lack of progress in the video gaming industry. Despite the consistent performance of games like “Honor of Kings” and “PUBG Mobile,” Tencent’s newer additions haven’t been as successful.

Ma plans to leverage Tencent’s renowned messaging app, WeChat, to spur growth, encouraging employees to innovate within the 13-year-old platform. However, future developments in the platform’s payment processing sector seem uncertain.

Regulations, too, have hindered Tencent. The company received a hefty fine last year for violating customer data management norms.

The e-commerce sector isn’t without its fair share of challenges. JD.com’s chairman and founder, Richard Liu, and Alibaba’s founder, Jack Ma, have both chided their teams for lackadaisical attitudes toward work.

A ray of hope shines from PDD Holdings, owner of Pinduoduo and Temu. While its revenues fall short of JD.com and Alibaba, its 94% year-over-year revenue growth and the rise of its stock by over 20% show promise. In contrast, Alibaba and JD.com’s stocks have dipped significantly.

In these times of exciting technological advances, staying stagnant is not an option. As the tech landscape evolves, so too must the giants who rule it.