President Donald Trump expressed openness to Elon Musk or Larry Ellison buying TikTok during a press conference on artificial intelligence infrastructure investment on Tuesday. He suggested that the buyer could give half the proceeds to the United States in exchange for operational permits.
Trump’s proposal during AI investment briefing
Trump, alongside Oracle co-founder Larry Ellison, SoftBank CEO Masa Son, and OpenAI CEO Sam Altman, announced a $500 billion investment in artificial intelligence infrastructure. “What I’m thinking about saying to somebody is, buy it, and give half to the United States of America. Half, and we’ll give you the permit,” Trump stated, with Ellison responding, “Sounds like a good deal to me, Mr. President.”
Despite this proposal, the legality of U.S. operations for a speech platform like TikTok, as governed by the First Amendment, remains unclear. This development marks an early sign of Silicon Valley’s close ties with Trump in his new term.
Executive order and TikTok’s status
Trump signed an executive order instructing his administration not to enforce a law against service providers tied to a forced divestiture bill, which includes Oracle, Apple, and Google, for 75 days. However, legal experts indicate that this executive action provides limited protection against violations of federal law that could result in penalties totaling $850 billion.
Currently, TikTok, owned by China’s ByteDance, is working through a potential sale. It has received further offers, including from billionaire Frank McCourt’s Project Liberty and YouTube creator MrBeast, whose investor group is consulting with legal representatives connected to Trump’s legal picks.
MrBeast’s serious bid
YouTube and TikTok star MrBeast, real name Jimmy Donaldson, publicly declared on January 13th his willingness to buy TikTok to prevent it from being banned. Although his tone appeared lighthearted, Donaldson’s lawyer confirmed the seriousness of the bid. In a subsequent TikTok video, he mentioned meeting with major investors and confirmed that an offer to purchase the platform was in preparation.
The urgency stems from a Supreme Court decision that upheld a federal law banning TikTok unless its ownership transitions to a non-China-based entity. TikTok briefly ceased operations as a nationwide ban loomed but resumed functionality after Trump’s announcement extending the operational period for 75 days.
Analysts valued TikTok’s U.S. business at approximately $50 billion, while Trump’s comments suggested the company could be worth $1 trillion if it secures the necessary U.S. operating permits. Chinese officials have reportedly considered selling a portion of TikTok to Musk. However, TikTok’s parent company, ByteDance, has not confirmed intentions to sell.
The recent developments come as talks around TikTok’s potential sale to a U.S. buyer reignite, stemming back to efforts during Trump’s first term. Ongoing interest from investors, including a consortium known as “The People’s Bid for TikTok,” continues to shape the landscape, involving figures like Shark Tank’s Kevin O’Leary and billionaire Frank McCourt.
This consortium is backed by investments from Guggenheim Securities and inventor Tim Berners-Lee. TikTok’s U.S. assets, minus its algorithm, are estimated between $40 billion and $50 billion, though precise valuation remains challenging due to the unique value associated with the algorithm.
McCourt’s group has not disclosed the specifics of their offer, but they previously valued the assets around $20 billion. They stated they would refrain from publicly sharing financial specifics until ByteDance is ready to review proposals.
Featured image credit: Solen Feyissa/Unsplash
