ByteDance's AI Phone Ambitions Draw Scrutiny from Rivals

Chinese tech giant ByteDance is developing a smartphone with advanced artificial intelligence (AI) features, according to industry sources. The move has reportedly raised data security concerns among its major rivals, Tencent and Alibaba. The phone would deeply integrate AI from ByteDance, the company behind TikTok. This integration could allow ByteDance's AI to access core device functions and user data. Executives at Tencent and Alibaba have privately expressed concerns about this project. They fear ByteDance could gain an unfair advantage by controlling both the AI software and the smartphone hardware. Specifically, rivals worry about how ByteDance might manage user data. The concern is that data collected through the phone could strengthen ByteDance's other services, like its popular short-video platforms. The development highlights growing competition in China's AI sector. Tech firms are increasingly seeking to embed their AI into everyday devices, making data security a key point of rivalry. ByteDance has not officially commented on the smartphone project. Tencent and Alibaba have also not made public statements regarding these specific concerns.