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TikTok: “Without the algorithm the app is completely useless”, acquisition at risk?

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Brian Adam
Professional Blogger, V logger, traveler and explorer of new horizons.
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TikTok: 'Without the algorithm the app is completely useless', acquisition at risk?

Just at the moment when TikTok seemed to have found a buyer, a recent Bloomberg report recalls that the Chinese government has imposed new restrictions on the export of technologies related to artificial intelligence, including the algorithm that deals with the social feed. Without it, according to an insider, TikTok is completely useless.

ByteDance to sell the US division of TikTok will have to obtain the permission from the Dragon government, which however may not arrive. According to what reported by Bloomberg China would be willing to hit the United States in turn by not granting them the code necessary to make the social network work properly. The aforementioned insider is indeed convinced that “TikTok without the algorithm is like a luxury car with a bad engine”.

Furthermore, reports that have also appeared in China state that the negotiations could jump if China does not allow the sale of the TikTok algorithm; otherwise, the buyer would find the social media in hand without the component that made it so successful. Recall that the companies in the running for the acquisition of TikTok are Microsoft, Oracle, Twitter, Alphabet Inc. and Triller, and that currently the Redmond company would seem to have an advantage.

All have until November 12 to find a definitive agreement, otherwise ByteDance will be forced to close the US division of its social network.

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