ByteDance, the parent company of video sharing app TikTok, has started selling TikTok’s artificial intelligence to other companies outside China.
According to the Financial Times, a new division of the company called BytePlus was launched in June, and TikTok’s artificial intelligence has been sold to companies such as India-based social gaming platform GamesApp, and US fashion app Goat.
BytePlus offers customers the chance to access the TikTok recommendation algorithm and personalize their apps for their customers. TikTok’s recommendation algorithm is one of the most important reasons why TikTok stands out over its rivals.
Often credited for the rapid growth of the platform, the core TikTok algorithm determines the videos users see before they start following creators. The way you interact with the app affects the videos it recommends to you.
The company explained in a blog post last year how the ForYou feature determines which videos are served to a particular user. The company said it bases recommendations on user interactions, including which videos you’ve liked, commented on, or created.
BytePlus also includes automated translation of text and speech, real-time video effects and a suite of data analysis and management tools.
TikTok’s source code and user data is provided by its parent company ByteDance and it is kept separate from other businesses.
In 2020, the Indian government banned some apps developed by Chinese firms, including TikTok, over concerns that these apps are engaging in activities that threaten the country’s national security and defense.
Sources familiar with the matter said back in September that TikTok owner ByteDance was planning to hold a U.S. initial public offering of TikTok Global, the new company which will operate the short video app, if the proposed deal be cleared by the United States government. In April 2021, ByteDance said that it has no imminent plans for an initial public offering.
“There has been recent media speculation about our IPO plans. We would like to clarify that we’re not ready at this stage and do not have IPO plans yet,” TikTok owner ByteDance said in a statement.