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TikTok Eyes Partial Sale and Doubling Down on AI | PYMNTS.com

Jan 23, 2025 - pymnts.com
The future of TikTok in the United States remains uncertain as its Chinese parent company, ByteDance, explores options to address U.S. government concerns over data privacy, content moderation, and national security. General Atlantic CEO Bill Ford indicated that a partial sale of TikTok's U.S. operations could be a viable solution, allowing ByteDance to retain some control while meeting security demands. This potential deal might involve selling a significant stake to American investors or creating a new entity for U.S. operations. Meanwhile, interest from potential bidders, including the search engine startup Perplexity AI, has emerged.

In parallel, ByteDance is reportedly investing heavily in artificial intelligence, with plans to spend over 150 billion yuan ($20.64 billion) on AI-related capital expenditures this year. This includes significant investments in overseas AI infrastructure, benefiting major chipmakers like Huawei, Cambricon, and Nvidia. Despite reports of these investments, ByteDance has denied the accuracy of the information provided. The company continues to develop its AI capabilities, with over 15 standalone AI applications, including popular tools like the chatbot Doubao and the text-to-video generator Jimeng.

Key takeaways:

  • Investors are considering a partial sale of TikTok's U.S. operations to meet government security demands, allowing ByteDance to maintain some control.
  • ByteDance is reportedly planning significant capital expenditures on AI, with over 150 billion yuan earmarked, despite conflicting reports on the exact amount.
  • ByteDance's AI investments include developing standalone applications like Doubao, Jimeng, and Xinghu, with a focus on overseas infrastructure.
  • Major chipmakers such as Huawei, Cambricon, and Nvidia are expected to benefit from ByteDance's AI-related spending, although ByteDance has disputed some reported details.
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