ByteDance intends to spin off its healthcare business, Xiaohe. The specific scope of the spin-off, equity structure, financing, and subsequent partnership arrangements have not yet been disclosed, and ByteDance has not commented. This marks another major restructuring for Xiaohe after it was downsized and merged into Douyin in 2023. In recent years, its business focus has shifted toward AI, with the launch of the Xiaohe AI Doctor and preparations for an offline clinic in Shanghai. Xiaohe was founded by Wu Haifeng and others from Baidu's search team. In its early years, it received substantial investment from ByteDance, with the team once exceeding 1,000 employees. It built multiple online products, operated Douyin's healthcare e-commerce, and acquired several offline medical institutions. However, the traffic, online services, and offline diagnosis and treatment components were not fully integrated. In 2023, the business was significantly scaled down, with the team reduced to just over 100 people. Wu Haifeng was reassigned to lead Douyin Search but remains involved with Xiaohe's business. In recent years, Xiaohe has developed a vertical medical model based on Doubao, launched the Xiaohe AI Doctor app, introduced a medical vision-language model, and centered its strategy on offline clinics focused on primary care. Previously, ByteDance's AI drug R&D business, Anew Labs, completed its spin-off and secured its first round of external financing, with ByteDance retaining a controlling stake. AI technology has become a new pillar supporting Xiaohe's exploration of healthcare pathways following this spin-off.