ByteDance It has suspended global distribution of its viral video generation model Seedance 2.0 after copyright disputes with major Hollywood studios and streaming platforms escalated, according to reports, citing people familiar with the matter.
The tool, which can generate realistic videos from textual instructions or images, quickly gained traction online for creating cinematic clips that resembled scenes from popular movies and featured AI-generated versions of famous actors. However, the technology has also sparked a backlash from entertainment companies who say the system can be trained on copyrighted material without permission.
Several groups have accused Sedans of violating the law
Shortly after its release in China, Seedance 2.0 attracted criticism from streaming companies. Viral content featuring AI-generated celebrity fighters has raised serious questions about the legitimacy of the model’s data.
Just last month, Disney hit ByteDance with a cease-and-desist letter, alleging that the platform illegally blocked its franchises as if they were public domain assets. Disney specifically called out the theft of iconic characters from the vast universe of Marvel and Star Wars.
At the time, Disney attorney David Singer, also a partner at Jenner & Block, commented: “ByteDance’s use of Disney IP is intentional, pervasive and completely unacceptable. We believe this is only the tip of the iceberg, which is surprising given that Seedance has only been available for a few days.”
After Disney took legal action, so did Paramount Skydance blame ByteDance’s Seedance is mining its library, including South Park, Star Trek, Dora the Explorer and The Godfather franchises, to train its AI tools. It sent the firm a cease and desist letter.
Additionally, Motion Picture Association President and CEO Charles Rivkin has spoken out, calling for an immediate end to ByteDance’s copyright infringement. The Artistry Human campaign called the situation “an attack on every creator” and called on regulators to use every legal tool to stop IP theft. It noted that “these unauthorized fakes and clones of voice actors violate fundamental aspects of personal autonomy.”
In response to the backlash in February, ByteDance said it was strengthening its safeguards against unauthorized use of intellectual property and likenesses.
According to reports, ByteDance has now suspended plans to expand its platforms in other regions. Seedance originally planned to make its tools available by mid-March. The company’s lawyers and engineers are still working to identify risks and build digital “safe havens” to prevent future AI breaches.
ByteDance plans to buy Nvidia’s advanced AI chips
Despite the Seedance debacle, ByteDance still plans to increase its computing power outside of China by using Nvidia’s advanced AI chips. It has partnered with a Southeast Asian company with the intention of acquiring Blackwell Nvidia chips in Malaysia for AI research and development.
Nvidia’s Tier 1 partner designation gives it priority access to state-of-the-art chips and allows ByteDance to tap into that pipeline for hardware it can’t legally buy in its domestic market.
ByteDance’s decision is great news for Nvidia, which secures any overseas sales before the export window closes. In the latest earnings call, Nvidia CEO Jensen Huang said that they are seeing high demand for their chips.
He commented, “The adoption of agents in the enterprise is growing rapidly. Our customers are rushing to invest in AI computing.”
The chip maker is also trying to introduce more products, including Vera Rubin chips. Vera Rubin is built with 1.3 million components, which is 10 times more economical than Grace Blackwell. The heart of the system is 72 Rubin GPUs and 36 Vera CPUs, mostly sourced from Taiwan Semiconductor Manufacturing Company (TSMC).
Most of the other parts from different parts of the world, viz China, Vietnam, Thailand, Mexico, Israel and USA However, analysts have raised concerns that Nvidia may struggle to meet demand for chips, especially amid rising memory prices. Recently, though, Dion Harris, Nvidia’s head of AI infrastructure, reassured buyers that they’re in good shape.
