Most importantly, President Donald Trump himself, who was the direct cause of the problems of the Chinese company, agreed to sign the agreement. At the same time, the US Department of Commerce extended the time previously allotted to TikTok by one week, i.e. until September 27, for ByteDance to be able to finalize the contract (which does not change the fact that TikTok again filed a lawsuit against the US administration, citing violations of First Amendment rights). and political motivation of decisions). What does this contract look like? First of all, ByteDance will create a new company called TikTok Global, which will be responsible for TikTok's operations in the United States and most of its international users, with 20% of the shares owned by Oracle and Walmart.
Moreover, the first enterprise famous for enterprise software, and in particular database management systems, will be a "secure cloud provider" and handle US data, and Walmart will release its e-commerce and advertising technology. In addition, TikTok Global will pay over $ 5 billion in new tax to the US Treasury, and together with Oracle, Walmart, and investors such as Coatue and Sequoia, it will launch an AI-powered educational educational program from which children can learn basics of reading or math, as well as taking up more advanced topics, such as computer engineering.
An additional condition is the company's stock exchange debut, which is to lead to an increase in the ownership of TikTok Global in American hands over time. Interestingly, some conditions were a surprise for ByteDance - as Reuters informs, the Chinese company only found out about the educational program on September 20, but as she admitted, education is very close to her heart, so of course she will deal with this topic (as if it had a different solution). By the way, the company announced that it would not hand over its valuable algorithms to Oracle, because this would, in turn, endanger the Chinese government, which recently introduced new restrictions on the export of artificial intelligence - but TikTok Global will allow Oracle to thoroughly check its source code.
However, as experts emphasize, although the contract will be signed and Donald Trump will theoretically get his way, in fact, there are still many worrying issues. It should be remembered that 80% of TikTok Global will remain in Chinese hands, which means that the company will still struggle with pressure and may be persuaded to spy on its home government or spread false information. And although the agreement may look like taking care of the interests of American citizens, and by the way also users of the platform around the world, it does not seem that it can realistically limit the influence of the Chinese authorities.