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Trump Intervenes To Bring TikTok Back To The U.S.

TikTok began restoring access for U.S. users on Sunday, following a pledge by President-elect Donald Trump to reinstate the platform’s operations as he prepared to take office. Speaking at a rally before his inauguration, Trump emphasized the importance of the app’s return, stating, “Frankly, we have no choice. We have to save it.” He also hinted at plans for a joint venture to secure TikTok’s presence, a platform used by 170 million Americans.

Hours before the rally, TikTok informed its users about the positive developments, attributing the app’s revival to Trump’s efforts. “Thanks to President Trump’s leadership, TikTok is back for U.S. users,” read the company’s message. While some users regained access to limited services on the app, the full platform remained unavailable for download on app stores as of late Sunday.

TikTok acknowledged ongoing efforts with service providers to restore operations fully. In a statement, the company expressed gratitude to Trump for ensuring clarity and protection for its service providers. This assurance, TikTok noted, was crucial in allowing its operations to continue without legal risks. The platform also highlighted its role in supporting over 7 million small businesses across the U.S.

Tensions Amid U.S.-China Relations

TikTok’s revival comes against the backdrop of strained ties between the U.S. and China. While Trump has indicated plans to impose tariffs on China, he also expressed interest in fostering direct communication with the Chinese leadership. Addressing the matter, China’s foreign ministry stated its hope for a fair and open business environment in the U.S. for international companies like TikTok.

TikTok had gone offline for U.S. users late Saturday following the implementation of a law banning its operations over national security concerns. Officials cited fears that user data could be accessed by ByteDance, the app’s Chinese parent company, and misused. In response, Trump announced plans to delay the enforcement of the law, creating an opportunity to negotiate a deal ensuring national security.

On his social platform, Truth Social, Trump suggested the U.S. take a 50% ownership stake in a joint venture overseeing TikTok’s U.S. operations. He also assured companies supporting the app’s continued availability that they would face no legal liabilities.

Divided Opinions On TikTok’s Return

Trump’s intervention marks a notable shift from his earlier stance during his first term in office when he sought to ban TikTok entirely over privacy concerns. In contrast, he now credits the app for helping him connect with young voters during the 2024 presidential election. However, not all members of Trump’s Republican Party agree with his actions. Senators Tom Cotton and Pete Ricketts have criticized the move, stating that only a complete severance of ties between ByteDance and the Chinese government would satisfy legal requirements.

The law passed by Congress grants the U.S. government the authority to ban or require divestitures of Chinese-owned apps, a move that has already affected other ByteDance properties like CapCut and Lemon8, which were also removed from U.S. app stores.

A “Hair On Fire” Moment For Businesses

The temporary shutdown of TikTok sent shockwaves across industries reliant on the platform. Marketing agencies scrambled to develop contingency plans, with one executive describing the situation as a “hair on fire” crisis. Meanwhile, U.S. users flocked to VPN searches, hoping to bypass restrictions, and e-commerce sellers worried about delayed transactions on TikTok Shop.

During the turmoil, TikTok CEO Shou Zi Chew is expected to attend Trump’s inauguration and a rally, signalling the company’s support for the deal. Meanwhile, interest in TikTok’s U.S. operations is growing, with names like Elon Musk and former Los Angeles Dodgers owner Frank McCourt reportedly exploring acquisition opportunities. A U.S. tech startup, Perplexity AI, has also submitted a proposal to merge with TikTok’s U.S. branch and create a new entity involving other partners.

Despite the upheaval, TikTok’s path forward may cement its place as a dominant social media platform in the U.S., backed by President Trump’s evolving approach to its operations and the broader landscape of U.S.-China tech relations.

Moonshot’s Kimi K2: A Disruptive, Open-Source AI Model Redefining Coding Efficiency

Innovative Approach to Open-Source AI

In a bold move that challenges established players like OpenAI and Anthropic, Alibaba-backed startup Moonshot has unveiled its latest generative artificial intelligence model, Kimi K2. Released on a late Friday evening, this model enters the competitive AI landscape with a focus on robust coding capabilities at a fraction of the cost, setting a new benchmark for efficiency and scalability.

Cost Efficiency and Market Disruption

Kimi K2 not only offers superior performance metrics — reportedly surpassing Anthropic’s Claude Opus 4 and OpenAI’s GPT-4.1 in coding tasks — but it also redefines pricing models in the industry. With fees as low as 15 cents per 1 million input tokens and $2.50 per 1 million output tokens, it stands in stark contrast to competitors who charge significantly more. This cost efficiency is expected to attract large-scale and budget-sensitive deployments, enhancing its appeal across diverse client segments.

Benchmarking Against Industry Leaders

Moonshot’s announcement on platforms such as GitHub and X emphasizes not only the competitive performance of Kimi K2 but also its commitment to the open-source model—rare among U.S. tech giants except for select initiatives by Meta and Google. Renowned analyst Wei Sun from Counterpoint highlighted its global competitiveness and open-source allure, noting that its lower token costs make it an attractive option for enterprises seeking both high performance and scalability.

Industry Implications and the Broader AI Landscape

The introduction of Kimi K2 comes at a time when Chinese alternatives in the global AI arena are garnering increased investor interest. With established players like ByteDance, Tencent, and Baidu continually innovating, Moonshot’s move underscores a significant shift in AI development—a focus on cost reduction paired with open accessibility. Moreover, as U.S. companies grapple with resource allocation and the safe deployment of open-source models, Kimi K2’s arrival signals a competitive pivot that may influence future industry standards.

Future Prospects Amidst Global AI Competition

While early feedback on Kimi K2 has been largely positive, with praise from industry insiders and tech startups alike, challenges such as model hallucinations remain a known issue in generative AI. However, the model’s robust coding capability and cost structure continue to drive industry optimism. As the market evolves, the competitive dynamics between new entrants like Moonshot and established giants like OpenAI, along with emerging competitors on both sides of the Pacific, promise to shape the future trajectory of AI innovation on a global scale.

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