Tag: ByteDance

ByteDance has reportedly suspended the global rollout of its new AI video generator

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A month after Seedance 2.0’s launch in China sparked cease-and-desist letters from Disney and Paramount Skydance over its use of copyrighted materials, its developer ByteDance has reportedly hit pause on the release of the AI video tool in other regions. According to The Information, which spoke to two anonymous sources with knowledge of the matter, ByteDance has suspended Seedance 2.0’s global rollout. Engadget has reached out to ByteDance for comment and will update this story if we hear back with more information.

Seedance 2.0 caught heat from Hollywood studios almost immediately upon its release, after user-generated videos including a viral AI clip of Brad Pitt fighting Tom Cruise sparked concerns that copyrighted works were used in training the model. In February, ByteDance told the BBC that it is “taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users.” It’s unclear when exactly ByteDance planned to release the tool more widely.

What you should know about the owners of US TikTok

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​ByteDance, TikTok’s Chinese parent company, recently established a separate American entity to run the app’s U.S. operations. This restructuring aims to separate U.S. TikTok from its Chinese parent, addressing concerns about data privacy and foreign control.

The move came after years of pressure from lawmakers, who feared the Chinese government’s potential access to Americans’ data. In 2024, Congress enacted a law, mandating that TikTok’s U.S. operations be separated from ByteDance.

​Under the new structure, about 80% of the U.S. TikTok entity is owned by non-Chinese investors, with ByteDance keeping only a 19.9% share. The newly formed entity, “TikTok USDS Joint Venture LLC,” licenses TikTok’s recommendation algorithm from ByteDance and independently manages content moderation, and oversees data protection, algorithm security, and software controls.

The managing investor group consists of Oracle, the private equity firm Silver Lake, and the investment firm MGX. Each holds a 15% stake, totaling 45% of the U.S. business. Here’s what you should know about them.

Oracle

Oracle is a leading cloud computing and database firm that collaborates with top companies, such as OpenAI. Oracle previously attempted to acquire TikTok and already provides cloud infrastructure for the app, managing its U.S. user data. 

Under the new deal, Oracle serves as the security partner, auditing TikTok’s compliance with U.S. security requirements, managing data storage, and overseeing updates to the content recommendation algorithm. 

It’s important to note that Oracle co-founder Larry Ellison, now the company’s executive chairman and chief technology officer, is a prominent billionaire with known connections to President Trump.

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MGX

MGX is an AI-focused investment firm based in the United Arab Emirates, which invests in semiconductors and data centers. The firm was created by Mubadala (Abu Dhabi’s sovereign wealth fund) and G42, an Emirati AI company. 

MGX’s stake in U.S. TikTok could give the firm influence over key decisions shaping TikTok’s AI direction. The firm already backs Elon Musk’s xAI, Anthropic, and OpenAI, and contributed to a $100 billion AI data center initiative announced by President Trump, in which Oracle is participating as well. 

It’s also worth pointing out that MGX has partnerships with Microsoft and BlackRock.

Silver Lake

Silver Lake, a leading U.S. private equity firm, has long invested heavily in technology companies, including Airbnb, Twitter, Dell Technologies, Tesla, and Waymo. Its role in U.S. TikTok is primarily financial and strategic, offering capital and expertise to help shape the platform’s direction.

Notably, Silver Lake has collaborated with MGX in the past, including during the acquisition of a majority stake in the software and chip company Altera last year. Additionally, Silver Lake has invested in G42 since 2021.

Other investors

  • Dell Family Office: Michael Dell’s investment firm.
  • Vastmere Strategic Investments: A firm affiliated with Susquehanna International Group (SIG), which is owned by billionaire Jeff Yass.
  • Alpha Wave Partners: A global investment firm involved with notable companies, including SpaceX and Klarna.
  • Virgo LI: The investment arm associated with Israeli tech investor Yuri Milner, who was an early backer of Facebook and Twitter.
  • NJJ Capital: The family office of Xavier Niel, a French billionaire businessman who founded telecommunications company Iliad.
  • Revolution: The venture capital firm founded by AOL co-founder Steve Case.
  • Merritt Way: Managed by partners of Dragoneer Investment Group, a San Francisco-based investment firm.
  • Via Nova: An affiliate of General Atlantic.

What will happen to TikTok? A look at the potential buyers.

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TikTok may be back online, but the app’s future in the United States is still far from certain. President Donald Trump’s executive order of the ban was only a temporary reprieve for the company.

While ByteDance was once resistant to the idea of selling TikTok’s US business, that seems to have changed since Trump took office. A ByteDance investor that striking a deal to keep TikTok in the US is “in everybody’s interest.” Officials in China have also suggested they are “open” to a deal, The Wall Street Journal.

A number of people and companies have signaled some interest in TikTok. Trump himself he would like to see a “bidding war” for the app and that the US government should own in the company. What an eventual deal may look like, though, is unclear. These are the offers we currently know about. Trump’s executive order gave the company 75 days to come to an agreement.

NPR that Oracle was working with Trump Administration officials on “a plan to save TikTok that involves tapping software company Oracle and a group of outside investors to effectively take control of the app’s global operations.” Under this arrangement, ByteDance “would retain a minority stake in the company” but Oracle would oversee “the app’s algorithm, data collection and software updates.”

Headed up by Trump pal Larry Ellison, TikTok has an existing partnership with Oracle. The cloud company TikTok’s US user data and the company was of TikTok’s original negotiations to remain operational in the US under a plan called Project Texas. (Those negotiations abruptly in 2022.)

Trump also previously for Oracle and Walmart to acquire a 20 percent stake in TikTok in 2020, when the president tried to ban the app during his first term. That deal never materialized. Now, Trump’s position on Oracle is unclear. He that Oracle was not among the “many people” with whom he had discussed a deal for TikTok. (Ellison, notably, has been at the White House in recent days. He joined Trump and OpenAI CEO Sam Altman for the announcement of the .)

Microsoft is reportedly also interested in playing a role in TikTok’s future, according to the same NPR story, which said Microsoft was among the “other potential investors” involved in the talks with Oracle. Trump seemingly confirmed this. When asked directly if Microsoft was interested in buying TikTok this week, Trump “I would say yes.”

As with Oracle, this isn’t the first time Microsoft has attempted to acquire the social media company. Microsoft was in talks to buy TikTok and take over its US business, but the deal . Microsoft CEO Satya Nadella later it as “the strangest thing I’ve ever sort of worked on.”

Just before TikTok briefly went offline, Perplexity AI threw its hat into the ring, offering to ByteDance that “would “create a new entity combining Perplexity, TikTok US and New Capital Partners.”

Since then, Perplexity has reportedly tweaked its proposal. According to the , the AI company is now floating a plan that calls for the “U.S. government to own up to half of that new structure once it makes an initial public offering of at least $300 billion.” Under this plan, ByteDance would keep a minority stake in the company and “would contribute TikTok’s U.S. business without the proprietary algorithm that fuels what users see on the app.”

YouTuber MrBeast, also known as Jimmy Donaldson, joked about buying TikTok ahead of the initial ban. He later that “so many billionaires” had reached out to him about making an offer that he was going to try to actually pull it off.

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At least one group has already his involvement, along with other “high-net-worth individuals” looking to make an “all-cash offer.” That group, led by employer.com founder Jesse Tinsley also reportedly includes Roblox CEO David Baszucki. According to Bloomberg, together they have put together “significantly” more than for a bid, though it’s not clear how seriously their offer is being considered. Bloomberg notes that there’s also a possibility that MrBeast may attach himself to other bids.

Another set of investors that’s proposed a bid to buy TikTok is a group known as . Led by investor Frank McCourt, it includes of Shark Tank fame. The group initially came forward before the ban took effect. However, it’s not clear where they stand at the moment.

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O’Leary previously that deals involving a government stake may not comply with the law. “That 50/50 deal, I would love to work with Trump on, so would every other potential buyer … But the problem with some of these ideas is they are inconsistent with the ruling of the Supreme Court,” he said. “I would love to do a deal, if the law provided for it, but I don’t have the luxury of breaching the order of Congress.”

This week, he said that the deal “changes by the hour,” writing on X that iIt’s clear to me now that we’re going to have to do a dance between the original owners, the founders of ByteDance itself, and interpreting the law of what Congress and Supreme Court has upheld.”

So where does all this leave TikTok? For now, the company is in the same limbo it’s been in since it was briefly . The app is still not available in Apple or Google’s app stores and it could go down again if the company is unable to reach a deal.

For now, though, it seems both the government and ByteDance are much more willing to negotiate than they have been in the past. While these are all the semi-credible plans we know about now, the situation is likely to change over the next few weeks as the various sides attempt to hammer out a viable deal. We’ll keep this post updated as new details emerge.

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Apple lists all apps it removed alongside TikTok in the U.S.

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Amid the TikTok shutdown, in a rare move, Apple published a statement and a support document listing all affected apps that are inaccessible in the U.S. The iPhone maker typically doesn’t publish information for when it blocks apps.

Notably, other ByteDance apps, including CapCut, Lemon8 — which surged in the last few months — and Marvel Snap, are also part of the blocked apps. Here is the full list of apps that Apple has removed:

  • TikTok
  • TikTok Studio
  • TikTok Shop Seller Center
  • CapCut
  • Lemon8
  • Hypic
  • Lark – Team Collaboration
  • Lark – Rooms Display
  • Lark Rooms Controller
  • Gauth: AI Study Companion
  • MARVEL SNAP

In the support document, Apple noted that the company is following the law by blocking all these apps.

“Apple is obligated to follow the laws in the jurisdictions where it operates. Pursuant to the Protecting Americans from Foreign Adversary Controlled Applications Act, apps developed by ByteDance Ltd. and its subsidiaries — including TikTok, CapCut, Lemon8, and others — will no longer be available for download or updates on the App Store for users in the United States starting January 19, 2025,” the company said.

The document also highlights that people who are visiting the U.S. and have the App Store set to a non-U.S. region won’t be able to update the app or purchase in-app items for these apps.

TikTok and other ByteDace apps are banned as a result of a bill passed last year that would force the company to sell the short video app or face a ban. Last week, the Supreme Court upheld that law, resulting in Apple and Google blocking the app late on January 19.

TikTok Is in Some Minority Report-Style Legal Trouble

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Image for article titled TikTok Is in Some Minority Report-Style Legal Trouble

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Just months away from being banned in the U.S., the Federal Trade Commission (FTC) appears to be putting some salt in TikTok’s wound. The agency has issued a bizarre message about referring a complaint about the social media app to the Department of Justice (DOJ).

Will Banning TikTok Solve Privacy Issues? | Future Tech

The FTC issued a statement on Tuesday saying its investigations “uncovered reason to believe” that TikTok and its parent company ByteDance, are “violating or are about to violate the law.” The commission says the violations (or would-be violations) are of the Children’s Online Privacy Protection Act (“COPPA”) and the FTC Act but didn’t provide specifics. Also, the statement mentions how making this action public is something the FTC doesn’t normally do, but it determined that it was in the public’s interest to release the statement. So, we’re letting you know that they think you should know.

A DOJ spokesperson says they can’t comment on the substance of the referral, but the department did consult with the FTC in advance and is considering the claim.

In the statement, the FTC mentions how its investigation began in 2019 with Musical.ly, the predecessor of TikTok. Back then, the commission did find that the company was “aware that a significant percentage of users were younger than 13 and received thousands of complaints from parents” and issued a fine of $5.7 million. It’s unclear if this complaint against TikTok is related or if the investigation found other violations.

TikTok says it has been working with the FTC for more than a year to address concerns it may have.

“We’re disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution,” a TikTok spokesperson said in an emailed statement Tuesday. “We strongly disagree with the FTC’s allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed. We’re proud of and remain deeply committed to the work we’ve done to protect children and we will continue to update and improve our product.”

TikTok is not in the best spot right now, although it’s still incredibly popular. In April, President Joe Biden signed a bill requiring the divestment of TikTok or else face a U.S. ban. The social app is on the 270-day clock to figure out something, or it could wait for the upcoming presidential election and hope Trump wins as he’s suddenly come around to support TikTok. Maybe he found a dance that he liked watching on the app.

TikTok says it fixed a vulnerability that enabled a cyberattack on high-profile accounts

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TikTok says it has fixed a vulnerability that allowed for a cyberattack that targeted high-profile accounts, as reported by Axios. A TikTok spokesperson added that the company is currently working to restore access to impacted users.

The social media giant hasn’t announced how many accounts were hit by the attack, but we do know that CNN and Paris Hilton were targets. The hack involved sending messages to users that were filled with malicious code. When the user opened up the message, the code went to work and took over the entire account. Oddly, the impacted accounts didn’t post anything while they were compromised.

It remains unclear who was behind the attack and what their ultimate goal was, aside from taking over celebrity TikTok accounts. TikTok also remains mum as to the specifics regarding the vulnerability that allowed for the attack in the first place. This type of hack is extremely rare, however, so it shouldn’t be a big concern for average users.

The hack is known as a zero-click attack, meaning that you don’t have to click on anything to get infected. In this case, users just had to open up a direct message. The method used here is similar to zero-click spyware attacks, only those hackers target high-profile government officials and journalists for the purpose of secretly gathering information. This attack took over the whole account for unknown purposes.

This isn’t the first big TikTok hack. Last year, over 700,000 accounts in Turkey were compromised due to insecure SMS channels. Researchers at Microsoft discovered a flaw back in 2022 that let hackers overtake accounts with just a single click. Later that same year, an alleged security breach allegedly impacted more than a billion users. That’s a whole lot of people.