US version of TikTok may still use Chinese algorithm — summary & analysis

Recent reports say a potential US–China deal could license TikTok’s Chinese algorithm for use in a US version of the app, while placing ownership/control with American investors. Key names mentioned in reporting include Wang Jingtao, deputy director of China’s Cyberspace Administration, who said the deal would include “licensing the algorithm and other intellectual property rights.”

The Financial Times and other outlets have reported on the talks; an original summary appeared on Engadget — read the Engadget report.

Why this matters

• TikTok’s recommendation algorithm has been central to US concerns about influence and data control.
• Licensing the algorithm to a US-run entity raises questions about whether algorithmic behavior can be audited, modified, or fully detached from its original codebase and training data.
• Some reports name US officials commenting on the deal. We could not independently verify the attribution of “Scott Bessent” as US Treasury Secretary; the current US Treasury Secretary (as of this post) is Janet Yellen. Readers should watch for clarifications from major outlets.

Previous suitors and actions

Several American companies have been linked to potential solutions: Oracle has hosted US user data since 2022 and previously negotiated an agreement giving it responsibility for data and a stake in the US entity. In March, Perplexity AI proposed rebuilding the algorithm for US users. These proposals aim to address regulatory and national-security concerns but raise technical and trust questions.

What we don’t yet know

• Specific licensing terms and what parts of the algorithm or intellectual property would be shared.
• Exact governance, audit rights, and technical safeguards that would prevent foreign influence or data exfiltration.
• Whether Congress or the President would approve any final deal — the President retains authority to approve such transactions.

We will update this post as more verified information becomes available. For the moment, this is a developing story with significant geopolitical and tech-policy implications.

Question for readers: Do you think licensing the algorithm to a US-run company can fully address the security and influence concerns? Leave your thoughts below.

Source: Engadget (clean link provided). If you want faster updates from primary outlets, check major news organizations for further verification.