The algorithms mentioned above are considered “secret materials” by TikTok, responsible for suggesting videos to users.
Informed source of Wall Street Journal said that as of August 28, these algorithms are still in the negotiated agreement. This changed after the Chinese government announced new restrictions related to artificial intelligence (AI) exports.
Negotiators on both sides are currently trying to figure out whether the new regulation forces these algorithms to be approved for transfer by the Chinese authorities. If it does, the next question is whether Beijing can refute that.
This complex issue is reducing the likelihood that such an agreement could be completed soon.
TikTok’s parent company, ByteDance, has vowed to comply with the Chinese government’s request.
Some sources of Wall Street Journal Also said ByteDance is trying to clarify with Beijing how to implement a deal, if the new ban applies to the company’s algorithm.
For businesses looking to acquire TikTok’s overseas operations, not including algorithms will radically change the outlook these companies aim for.
According to the Wall Street JournalThe buyer said that most of TikTok’s value lies in those suggestion algorithms, which help loyal users to the application.
In a related development, US President Donald Trump on September 2 reiterated his request for the government to receive a part in any agreement on the transfer of operations in the US by TikTok, for having merit in facilitating the new deal.
“I told them they had until September 15 to reach an agreement. After that, we would force that company to close in this country. I say America must be well compensated because we are the ones making it possible, “Trump told reporters.