|
Getting your Trinity Audio player ready...
|
Edited by: TJVNews.com
In a move that could reshape the landscape of social media and technology, former Treasury Secretary Steve Mnuchin is reportedly eyeing a partnership with an artificial intelligence (AI) firm to facilitate a bid to acquire TikTok, as was reported by the New York Post. This revelation comes in the wake of growing Congressional concerns over the popular video-sharing app’s ownership by China-based ByteDance and its potential implications for national security.
Mnuchin’s interest in acquiring TikTok was first disclosed following the passage of a bill by House lawmakers, mandating ByteDance to divest its ownership of the app within six months or face a complete ban in the United States, according to the Post report. Now, insiders familiar with the matter reveal that Mnuchin is actively pitching a plan to rebuild TikTok’s algorithm on American soil as a strategic move to assuage Congressional apprehensions and navigate China’s stringent export regulations.
Central to Mnuchin’s strategy is the belief that overhauling TikTok’s sophisticated algorithm is paramount in addressing national security concerns. Indicated in the Post report was that the app’s algorithm, responsible for curating and recommending content to users, is seen as a potential avenue for data collection and surveillance, raising red flags among lawmakers.
Sources close to Mnuchin indicate that he recognizes the complexity and scale of the task at hand, acknowledging the necessity of partnering with an AI firm possessing advanced capabilities and expertise in algorithm development. The report in the Post explained that given the magnitude of the endeavor, Mnuchin is reportedly open to collaborating with multiple tech firms to ensure the successful reconstruction of TikTok’s algorithm within the confines of US jurisdiction.
However, both Mnuchin’s spokesperson and TikTok declined to comment on the matter to the Post.
As Mnuchin lays the groundwork for a potential bid to acquire TikTok, industry observers and experts have identified Oracle, the software giant led by billionaire Trump donor Larry Ellison, as a logical candidate to join forces with Mnuchin in this endeavor. According to the information provided in the Post report, Oracle’s involvement in the TikTok saga is not unprecedented; the company had previously been on the brink of acquiring TikTok during Mnuchin’s tenure as Treasury secretary as part of the Trump administration’s efforts to compel ByteDance to divest its ownership.
TikTok, in its bid to assuage concerns surrounding data security and user privacy, has committed to storing the data of its US users on servers operated by Oracle, a component of its “Project Texas” initiative, the Post report said. This proactive measure is designed to placate regulatory and legislative scrutiny while bolstering confidence in TikTok’s commitment to operating within US regulatory frameworks.
However, Oracle’s silence in response to inquiries regarding its potential involvement in Mnuchin’s bid leaves much to speculation and conjecture. Despite this, industry analysts posit that an Oracle-TikTok partnership would likely encounter less regulatory scrutiny compared to potential deals with tech behemoths such as Google, Meta (formerly Facebook), and Apple, as was detailed in the Post report. Oracle’s established presence in the technology sector and its previous engagement with TikTok position it as a feasible and relatively low-risk partner in Mnuchin’s bid.
Tobin Marcus, a former economic adviser to Vice President Biden during the Obama administration, asserts that Oracle’s involvement in the TikTok saga aligns with its historical entanglement in the matter, further validating its suitability as a partner in Mnuchin’s bid.
In addition to Oracle, Microsoft emerges as another logical contender in the race to acquire TikTok. The information in the Post report indicated that the tech giant, which boasts a significant investment in OpenAI, had previously come close to acquiring TikTok in 2020.
