ByteDance founder Zhang Yiming (장이밍) has made clear the company will not use “distillation” techniques to train its AI models, even if it costs more. He has recently become directly involved in the company’s AI strategy, reviewing development progress and hiring. The stance comes as the United States steps up scrutiny of Chinese firms’ use of distillation. ByteDance’s approach is tied to development of its video generation model, Seedance, and large investments in GPUs, data and talent.

Chinese AI unicorn DeepSeek will double peak-hour usage fees for its V4 model API, shifting its pricing strategy after sparking a price war with deep discounts. The company told subscribers it will raise V4 API prices during peak hours of 9 a.m. to noon and 2 p.m. to 6 p.m. Beijing time. The changes will take effect when the full V4 version goes online in mid-July.