The capitalization of ByteDance, which owns TikTok, was valued at $550 million, making it one of the most expensive private companies in the world.

ByteDance’s capitalization is growing into the hundreds of billions

Against a backdrop of an “investment flow” in artificial intelligence (AI), even small startups sometimes see market values that exceed several hundred billion dollars. Compared with the largest players: OpenAI is valued at roughly $850 billion, Anthropic at $350 million. But Asian companies are not left behind either. For example, ByteDance, the owner of TikTok, could reach a capitalization of about $550 billion.

*Source: Reuters*

The new valuation is based on deal terms under which investment group General Atlantic plans to sell its stake in ByteDance. This will be the first sale of shares of the Chinese giant after U.S. authorities approved a transaction involving TikTok’s American assets in January this year.

How the company’s value has changed
- Last year (when employees bought back shares) ByteDance’s capitalization was estimated at $330 billion.
- November last year – $480 billion.
- Current valuation – $550 billion, meaning the company grew by 66% in roughly six months.

Such growth is especially impressive for a Chinese-origin social network, given that most investments are now concentrated in the AI segment. ByteDance is actively expanding its presence in AI systems and plans to develop its own infrastructure accelerators.

Role of General Atlantic
- First entry – 2017, when ByteDance’s value was about $20 million.
- In recent weeks the company has begun selling its shares, planning to complete the process by the end of March this year.
- Deal details (number of remaining shares) have not yet been disclosed.
- The reason for the sale is linked to the fund’s lifecycle completion.
- Bill Ford, head of General Atlantic, remains a member of ByteDance’s board.

Financials and key investors
- Profit last year: $48 million.
- Major shareholders: KKR & Co., Susquehanna International Group, Primavera Capital Group.
- Venture firm HSG (the former Chinese arm of Sequoia Capital) plans to buy a large block of ByteDance shares.

Thus, ByteDance continues to demonstrate impressive capitalization growth and attracts attention from both traditional investors and AI-focused companies.