ByteDance has introduced standalone stock options for its AI lab, Seed, to prevent talent loss to competitors like Tencent. The new options, named "Doubao," allow employees to benefit directly from the AI unit's growth, marking ByteDance's first issuance of equity linked exclusively to a single business unit. This move comes as Tencent intensifies its recruitment efforts in the AI sector, following its acknowledgment of lagging in large model development. The Doubao options are priced at $13 per share, up from $10 at the end of 2025, reflecting improvements in commercialization and model performance. Despite the potential returns, internal challenges such as bureaucratic growth and fragmented responsibilities persist within Seed. Meanwhile, Tencent's smaller AI team offers greater autonomy and competitive compensation, attracting talent from ByteDance and other firms like DeepSeek, which is also under pressure to retain its core team.