Beijing Says TikTok's Algorithm "Not For Sale" As Deadline Looms
As both ByteDance and Washington dig in their heels in a dispute over a potential sale of TikTok's US-focused business, the Chinese tech upstart has just sent out its latest trial balloon in what has become a rapidly escalating game of chicken: The SCMP, a paper with ties to the CCP, is reporting that TikTok's algorithm will not be sold to an American buyer.
Any potential buyer could simply buy TikTok's US business, and build its own algorithm. But the TikTok algorithm uses advanced AI technology - technology that was recently included in a list of restricted assets that can't be sold to foreign buyers without state approval. Beijing has long opposed a deal, though initially it appeared that Beijing would tolerate a sale, at a premium, to be sure, so long as it's not a "smash and grab" rush job.
Trump said Thursday that "we'll either close up TikTok in this country for security reasons, or it will be sold…there will be no extension of the TikTok deadline."
Communist Party spokespeople have accused President Trump of trying to bully the company into a sale. Now, the SCMP is saying that the algorithm isn't for sale, but a western buyer could still purchase "the car, but not the engine."
With a looming US deadline for ByteDance to sell TikTok’s US operations, the source said: “The car can be sold, but not the engine."
“The company [ByteDance] will not hand out source code to any US buyer, but the technology team of TikTok in the US can develop a new algorithm,” the source told the South China Morning Post.
The source, who did not want to be identified, said ByteDance had notified US authorities and potential bidders of the decision.
If US President Donald Trump rejected the condition, there would be no possibility of selling TikTok and the app could turn dark for its American users after the Tuesday deadline for divestment, the source said.
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The source said the “no algorithm” condition was now the bottom line for any discussions of sales or restructure of TikTok, following the introduction of new Chinese government export controls.
https://www.zerohedge.com/geopolitical/beijing-says-tiktoks-algorithm-not-sale-trumps-sale-deadline-looms