- TikTok parent company ByteDance saw its revenue increase 60% in 2023, Bloomberg reported.
- TikTok has been behind ByteDance’s recent success, allowing it to break into global e-commerce markets.
- This growth came as Congress debated, then passed, a bill that could ban TikTok in the United States.
Revenue at ByteDance, TikTok’s parent company, grew about 60% last year, blowing away its competitors.
The company’s profits increased from $25 billion in 2022 to $40 billion in 2023, Bloomberg reported.
This success was fueled by “TikTok Shop,” which helped ByteDance, a Chinese company, break into international e-commerce markets in the United States and Southeast Asia.
While generating record revenues, TikTok’s success has also attracted the attention of the US Congress. After lengthy debate, US lawmakers passed a bill in March that would force ByteDance – or any company owned by a “foreign adversary” – to shut down TikTok in the US unless it sells the division to a company American. ByteDance will likely challenge any forced sale in court.
Experts say a ban on TikTok could hurt President Joe Biden’s re-election campaign because members of Congress are getting pushback from their children using the app. Former President Donald Trump initially pushed for a ban on TikTok while in office, but changed course last month, saying a ban would “make Facebook bigger.”
“I consider Facebook an enemy of the people,” he said.
News of ByteDance’s growth follows revelations that the company was using OpenAI technology to help it create its own AI chatbot. The AI community greeted this revelation with dismay. This also violated OpenAI’s terms of service, The Verge reported.
ByteDance did not immediately respond to a request for comment from Business Insider on Wednesday.
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