
AXIOS.COM
'lease'
TikTok's new US entity would lease its algorithm from China
SUMMARY
TikTok's new U.S. entity will lease its algorithm from ByteDance under a proposed deal involving the U.S. and China. This arrangement aims to satisfy a 2024 law requiring American control of TikTok to avoid a ban.
President Trump is expected to sign an executive order soon.
ByteDance plans to create a duplicate algorithm, leased to a joint venture led by U.S. investors, including Andreessen Horowitz and Oracle, which will verify the algorithm's operation and protect user data.
Concerns remain regarding congressional objections to this leasing strategy. Trump has extended enforcement deadlines by 120 days to finalize the deal, which aims to prevent TikTok from being sold or banned.
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