China’s ByteDance could be forced to sell TikTok U.S., but its quiet lead in AI will help it survive—and maybe even thrive

TikTok's parent company, ByteDance, has signed a deal to sell its U.S. operations, marking a significant shift after years of pressure from Washington to divest. This decision comes amid ongoing scrutiny regarding data privacy and national security concerns associated with the app's operations in the United States.

TikTok has formalized investment agreements with Oracle and two investment firms, a significant step towards maintaining its operations in the United States amid ongoing scrutiny and potential bans. This move aims to solidify TikTok's presence in the U.S. market, addressing years of uncertainty regarding its future in the country.

Oracle's shares have surged following positive developments in its partnership with TikTok and ongoing discussions regarding fundraising efforts with OpenAI. This progress indicates a strengthening of Oracle's position in the competitive tech market.

TikTok has approved the sale of its U.S. operations to Oracle and other American investors, a decision influenced by ongoing scrutiny from the U.S. government and previous threats of a ban by President Donald Trump if the company did not divest its American assets. This move comes as part of a broader effort to comply with regulatory demands and mitigate national security concerns.