TikTok Sale: Algorithm Question Said to Complicate Deal

TikTok's algorithms decide what videos users see without first requiring them to follow other users or specify their preferences.

Advertisement
Highlights
  • Chinese government introduced export restrictions on AI technology
  • ByteDance would have to obtain license to export restricted technologies
  • Prospective buyers for TikTok include Microsoft-Walmart team-up & Oracle

The export restrictions appear to cover content-recommendation algorithms such as the one powering TikTok

Sale talks for TikTok's US operations have been complicated by the key question of whether the app's core algorithms can be included as part of a deal, according to a report in The Wall Street Journal that cited unidentified people familiar with the matter.

Those algorithms decide what videos users see without first requiring them to follow other users or specify their preferences. The Journal report stated the algorithms were considered part of the deal negotiations up until Friday.

That's when the Chinese government introduced export restrictions on artificial intelligence technology that appear to cover content-recommendation algorithms such as the one powering TikTok. The move followed President Donald Trump's effort to force a sale of TikTok's US operations by September 20.

Those export restrictions mean that TikTok's Chinese owner, ByteDance, would have to obtain a license to export any restricted technologies to a foreign company. The question is whether its algorithms would need Chinese government approval for transfer, and if so, whether Beijing would sign off.

The Journal report said both the prospective buyers and the seller, ByteDance, are trying to figure that out. Prospective buyers for US TikTok assets include a Microsoft-Walmart team-up and, reportedly, Oracle.

Representatives for TikTok did not immediately respond to a request for comment on Tuesday. Microsoft, Oracle, and Walmart declined to comment.


Is this the end of the Samsung Galaxy Note series as we know it? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

 

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: TikTok, US China Trade Row, TikTok ban
Popular Brands
#Trending Stories
  1. How to Lock Your Facebook Profile
  2. Apple India’s Physical Retail Store Launch Delayed Due to COVID-19
  3. Instagram Blocks Elaine Thompson-Herah for Posting Her Own Olympics Races
  4. Here Are All the Cheat Codes for GTA V on the PC
  5. Here’s How to Download YouTube Videos in Bulk
  6. Here’s How to Schedule WhatsApp Messages to Send Them Later
  7. Instagram Reels: How to Download and Save on Your Phone
  8. RedmiBook Price in India, Specifications Surface Ahead of Launch
  9. Amazon, Flipkart Sales: Best Offers on Mobile Phones
  10. Google Pixel 5a Price, Launch Date Surface Online
#Latest Stories
  1. Battlegrounds Mobile India Players Who Faced Issues With Daily Special Bundle Purchases Now Receiving Rewards
  2. Mi Mix 4 Specifications Tipped by Alleged Geekbench Listing, May Come With Snapdragon 888 SoC, 12GB RAM
  3. Apple's Internal Memo Acknowledges 'Misunderstandings' About Its New Photo Screening Features: Report
  4. Samsung Galaxy Z Fold 3, Galaxy Z Flip 3 Full Specifications, Renders Leak Ahead of Launch
  5. Tokyo Olympics 2020: Instagram Blocks Jamaican Sprinter Elaine Thompson-Herah for Posting Her Own Races
  6. Robinhood Adopts Meme Stocks Mantle and Their Violent Swings
  7. Unocoin Says Users Can Now Buy Gift Vouchers With Bitcoins From Brands Such as Domino’s Pizza, Prestige, More
  8. Binance Cryptocurrency Exchange to Stop Hong Kong Users From Trading Derivatives
  9. Huawei Reports Biggest Ever Revenue Drop Due to US Sanctions Forcing It to Sell Part of Handset Business
  10. Apple Wins Court Ruling Throwing Out $308.5-Million Patent Verdict
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2021. All rights reserved.