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Artificial Intelligence Factory, Data Risk, and VCs’ Mediation: The Case of ByteDance, an AI-Powered Startup

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  • Peiyi Jia

    (Robert J. Manning School of Business, University of Massachusetts Lowell, One University Avenue, Pulichino-Tong Business Center Suite 228, Lowell, MA 01854, USA)

  • Ciprian Stan

    (Rinker School of Business, Palm Beach Atlantic University, 901 S Flagler Drive, West Palm Beach, FL 33401, USA)

Abstract

The AI factory is an effective way of managing artificial intelligence (AI) processes, enabling broad AI deployment in a firm. The purpose of this study is to explore the role of the AI factory in an entrepreneurship context. How do AI-powered startups leverage AI to grow, and manage data risks? What is the role of venture capitalists in this process? We answer these research questions by conducting an in-depth study of an AI-powered startup: ByteDance. Our study extends both AI and entrepreneurship literature by showing that AI-powered startups adopt the AI factory approach to optimize scale, scope, and learning. Our discussion also emphasizes the critical role played by venture capitalists in assisting AI-powered startups in building AI factories and in reducing data risk.

Suggested Citation

  • Peiyi Jia & Ciprian Stan, 2021. "Artificial Intelligence Factory, Data Risk, and VCs’ Mediation: The Case of ByteDance, an AI-Powered Startup," JRFM, MDPI, vol. 14(5), pages 1-19, May.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:5:p:203-:d:548177
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    References listed on IDEAS

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