TLDRs;
- ByteDance launched Seedream 4.0, an AI image generator processing images 10x faster than earlier models.
- Seedream 4.0 costs US$0.03 per image, undercutting Google’s Gemini 2.5 Flash Image.
- The global AI image generation market is projected to hit US$2.63 billion by 2035.
- China’s AI policies balance innovation and oversight, giving domestic firms like ByteDance a competitive edge.
ByteDance has unveiled Seedream 4.0, its latest artificial intelligence image generation system, positioning itself as a direct challenger to Google DeepMind’s widely used Gemini 2.5 Flash Image.
The release marks a major leap for the Chinese tech giant as it looks to gain ground in the highly competitive generative AI space.
According to ByteDance, Seedream 4.0 produces images at over ten times the speed of its predecessor while maintaining cost efficiency for both enterprise and individual users. The tool is available across ByteDance’s platforms including Jimeng and Doubao AI, as well as through corporate integration via Volcano Engine.
Pricing pressures intensify global competition
Pricing is emerging as one of the fiercest battlegrounds in the AI image market. For enterprise clients, Seedream 4.0 is priced at US$30 per 1,000 generations, while individual users on Fal.ai can access the tool for just US$0.03 per image.
Seedream 4.0 is here and nano-banana should be worried.
9 images. 1.8 seconds. 99% consistency.
ByteDance just rewrote the rules.
Here's what Seedream 4.0 can do: pic.twitter.com/EytEIPgVzs
— Tom (@tomcrawshaw01) September 11, 2025
This is slightly below the US$0.04 charged by Google DeepMind for its Gemini 2.5 Flash Image, signaling ByteDance’s intention to undercut competitors on cost.
While ByteDance has claimed its model outperforms Gemini in internal evaluations, those findings have yet to be independently verified. Gemini 2.5 Flash Image continues to hold the top spot in global AI benchmarks for image generation and editing. Still, Seedream 4.0’s affordability could attract a significant share of cost-conscious users, especially as adoption of generative AI expands worldwide.
Explosive growth in AI image generation
The launch comes amid rapid expansion in the AI image generator sector. Industry estimates value the market at US$418.5 million in 2024, with projections soaring to US$2.63 billion by 2035, reflecting an 18.2% compound annual growth rate.
More broadly, the generative AI market as a whole has ballooned from US$191 million in 2022 to over US$25 billion in 2024, drawing in heavyweights from China, the U.S., and beyond.
ByteDance’s move signals that Chinese firms are increasingly prepared to compete head-to-head with Western rivals, offering not just comparable performance but also lower costs.
China’s AI policy supports innovation
Beijing has set the stage for domestic companies like ByteDance to thrive by pairing innovation incentives with regulatory oversight. In late 2023, China extended copyright protection to AI-generated works, giving developers greater confidence to build and commercialize such technologies.
At the same time, authorities introduced mandatory labeling requirements for AI-generated content, requiring platforms to clearly disclose when images are machine-made.
This dual-track approach, encouraging innovation while ensuring accountability, has provided companies like ByteDance with a supportive environment to refine tools like Seedream 4.0. With regulatory clarity at home, ByteDance could be better positioned to scale globally, especially as debates around AI governance intensify in the U.S. and Europe.
