ByteDance has introduced special stock options for employees in its AI lab, Seed, to counteract talent poaching by competitors like Tencent. These options, named after Doubao, are offered at a discounted price, allowing employees to benefit directly from the AI business's growth without dilution from other company units. This marks ByteDance's first issuance of stock options tied to a single business unit. The move comes as competition for AI talent in China intensifies, particularly in core engineering roles. ByteDance, which has become NVIDIA's largest customer in China, faces challenges as Tencent aggressively recruits AI experts, including former Seed members. To retain talent, ByteDance offers these options at $13 per share, up from $10 at the end of 2025, reflecting Doubao's improved performance. However, internal disputes over bureaucratic inefficiencies and fragmented responsibilities have emerged within Seed, contrasting with Tencent's smaller, more autonomous AI team.