ByteDance is facing mounting pressure in China’s fast-moving artificial intelligence sector after its flagship chatbot Doubao reportedly lost more than 6 million monthly active users in May, following signals that the platform may introduce paid subscription tiers. The decline marks a rare setback for the app, which has otherwise grown rapidly since its launch in 2023.
According to data from AI market tracker Aicpb.com, Doubao’s monthly active users fell by 6.1 million, a 1.81 percent drop, shortly after ByteDance updated the app’s iOS listing to preview new subscription options. The move included a standard plan priced at 68 yuan per month and a premium tier reaching up to 500 yuan monthly, raising concerns that monetization may have been introduced too early in a market still dominated by free services.
Analysts cited in the report warned that China’s consumer AI sector is not yet ready for widespread paid models. Li Bangzhu, founder of Aicpb.com, described the decline as a “worrying sign,” arguing that user numbers remain the decisive factor in a highly competitive environment. He added that the era of free AI services in China is still ongoing, suggesting that early monetization could weaken ByteDance’s leadership position.
Despite the setback, Doubao remains the country’s most widely used AI chatbot, with around 330 million users. However, competition is intensifying. Rival platform Qwen, developed by Alibaba Group, added more than 13 million users in May alone, reaching approximately 234 million monthly active users and narrowing the gap between the two platforms.
The growing rivalry highlights a broader strategic challenge in China’s AI industry. While companies are investing heavily in computing infrastructure and advanced AI capabilities, many consumers remain unwilling to pay for chatbot-based services. This creates tension between rapid technological scaling and uncertain revenue models, particularly as operational costs continue to rise.
Industry analysts have noted that the cost of supporting large-scale AI systems is becoming increasingly difficult to sustain under free-access models. However, the willingness of users in China to adopt subscription-based AI remains largely unproven, making early monetization a high-risk strategy compared to Western counterparts where paid AI services have already gained traction.
Despite the recent user decline, ByteDance is reportedly continuing its plans to introduce paywalled features for Doubao, though no official launch date has been confirmed. The company has not publicly commented on the reports, but the situation underscores a critical turning point in China’s AI race, where growth, monetization, and user loyalty are increasingly in conflict.
