Just two days before the Trump administration’s deadline to sell or get banned in the US, TikTok has finally reached a deal. This saved the app from slipping away from a major market like the US. With this, the attention now moves to the algorithm of the U.S. version. A latest report from Financial Times notes that the algorithm of the US version of TikTok will have some “Chinese characteristics.”
TikTok’s US version might use the Chinese algorithm
Wang Jintao, who is the deputy director of China’s internet regulator, reportedly told reporters that the deal includes “licensing the algorithm and other intellectual property rights.” The report further adds that the US Treasury Secretary Scott Bessent said that the US version of TikTok will use ByteDance’s algorithm, but that American investors will have control over it.
This marks a significant move, considering the TikTok algorithm has been the topic of discussion. US authorities feared that the Chinese government would ideologize or indoctrinate young Americans through recommended content. However, the United States will now have more certainty about what the algorithm can send to users, although the core operation remains that of the Chinese algorithm.
Several US companies pitched to buy the US version
President Trump delayed the TikTok ban in the US earlier this year, but it was only temporary. Several American tech giants reportedly came forward to take over the US version. In March, Perplexity AI proposed to completely rebuild TikTok’s algorithm for the US audience. This is with the help of new capital partners. Amazon, Microsoft, and several others were also in the race to take over TikTok.
A deal with Oracle almost looked certain in April, along with US venture capital giant Andreessen Horowitz. The company would be responsible for the US version of TikTok and hold a stake in the company. Oracle Cloud Storage has held US users’ data for a few years. It even reviewed TikTok’s algorithm. Having said this, President Trump will have a final say about any potential deals.
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