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ByteDance and Kuaishou see top AI experts leave for new ventures as China’s unicorn boom heats up

ByteDance and Kuaishou have seen top AI experts leave for new ventures, reflecting China's booming unicorn market and fierce competition for AI talent.

You’ve probably heard of ByteDance and Kuaishou Technology, the companies behind China’s most famous short video platforms. These tech giants have recently experienced an exodus of their top artificial intelligence (AI) experts. The reason? There is a growing interest among investors in start-ups that might become the next big name in AI, much like OpenAI, the creator of ChatGPT.

Key AI experts depart for new projects

According to Chinese media outlet 36Kr, Yang Hongxia, who was instrumental in developing large language models (LLMs) at ByteDance, has left the Beijing-based firm to embark on her own AI ventures. These LLMs are the backbone of generative AI services, such as ChatGPT.

In a separate report by LingTai, it was revealed that Fu Ruiji, who led Kuaishou’s Knowledge Graph and LLM projects, also left the company to work on an AI start-up. While details about Yang and Fu’s new projects remain scarce, their departures highlight a significant trend in China’s tech industry.

Both ByteDance and Kuaishou have not commented on the exits of these AI leaders.

The rise of China’s new unicorns

The departure of these experts is part of a broader trend in China, where the tech landscape is witnessing a surge in start-ups valued at over US$1 billion, known as “unicorns.” So far, four prominent AI-focused unicorns have emerged, attracting substantial investments. These are Baichuan, Zhipu AI, Moonshot AI, and MiniMax.

Yang’s career trajectory is notable. In late 2022, she left Alibaba Group Holding, where she managed the team responsible for Alibaba’s M6 AI model, to join ByteDance to head the company’s AI Lab and develop its LLM. Alibaba, the owner of the South China Morning Post, has also seen a number of its top AI talents move on to new opportunities.

Fu’s background is equally impressive. Before joining Kuaishou in 2021, he was the vice director at iFlytek’s AI research arm, overseeing projects like Kuaipedia and KwaiAgents. These initiatives positioned Kuaishou at the forefront of AI and multi-modal short video content.

Big Tech’s talent wars

The trend of AI experts leaving established companies to start new ventures is broader than ByteDance and Kuaishou’s. In 2023, Wang Changhu, who previously led ByteDance’s vision technology unit, founded his own company, AIsphere, and secured new funding in March. Similarly, Alibaba has witnessed several high-profile departures. Jia Yangqing, who once led the computing platform department of Alibaba’s cloud unit, left in early 2023 to join an AI infrastructure start-up.

In response to this talent drain, China’s major tech firms fiercely compete to attract top AI talent. Companies like Baidu, Huawei Technologies, and Alibaba offer competitive salaries and attractive benefits. Last November, Pinduoduo, a budget shopping platform, increased job advertisements, offering up to 60,000 yuan (approximately US$8,282) monthly for roles such as LLM developers and engineers at its Shanghai headquarters.

This exodus of talent from established firms to start-ups reflects a dynamic shift in China’s AI landscape. As the race to develop cutting-edge AI technology intensifies, both emerging and established companies are vying for the best minds in the field.

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