ByteDance Lifts AI Unit Valuation 30% With Staff Equity Awards

ByteDance has begun issuing stock options tied exclusively to its Seed AI division in an effort to retain researchers amid competition for talent. The options allow employees to purchase Doubao stock at $13 per unit. The units have risen nearly 30 percent in value since last year.

The program marks the first time ByteDance has linked equity grants to a single business unit rather than the parent company. Employees can benefit from Seed's performance without exposure to dilution from other ByteDance operations. The Financial Times reported the details on Tuesday.

The company faces departures from its AI teams.

Two senior researchers left for Tencent, according to the coverage. ByteDance did not comment on the departures or the new compensation plan.

Some observers have raised questions about whether unit-specific equity could reduce collaboration across ByteDance teams. The coverage noted potential effects on internal mobility. No further details on the scale of the program were released.