US Supreme Court Upholds Law Banning TikTok If It’s Not Sold by Its Chinese Parent Company

A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
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US Supreme Court Upholds Law Banning TikTok If It’s Not Sold by Its Chinese Parent Company

A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)

The Supreme Court on Friday unanimously upheld the federal law banning TikTok beginning Sunday unless it's sold by its China-based parent company, holding that the risk to national security posed by its ties to China overcomes concerns about limiting speech by the app or its 170 million users in the United States.

A sale does not appear imminent and, although experts have said the app will not disappear from existing users' phones once the law takes effect on Jan. 19, new users won't be able to download it and updates won't be available. That will eventually render the app unworkable, the Justice Department has said in court filings.

The decision came against the backdrop of unusual political agitation by President-elect Donald Trump, who vowed that he could negotiate a solution and the administration of President Joe Biden, which has signaled it won't enforce the law beginning Sunday, his final full day in office.

Trump, mindful of TikTok’s popularity, and his own 14.7 million followers on the app, finds himself on the opposite side of the argument from prominent Senate Republicans who fault TikTok’s Chinese owner for not finding a buyer before now. Trump said in a Truth Social post shortly before the decision was issued that TikTok was among the topics in his conversation Friday with Chinese leader Xi Jinping.

It’s unclear what options are open to Trump once he is sworn in as president on Monday. The law allowed for a 90-day pause in the restrictions on the app if there had been progress toward a sale before it took effect. Solicitor General Elizabeth Prelogar, who defended the law at the Supreme Court for the Democratic Biden administration, told the justices last week that it's uncertain whether the prospect of a sale once the law is in effect could trigger a 90-day respite for TikTok.

“Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary,” the court said in an unsigned opinion, adding that the law “does not violate petitioners' First Amendment rights.”

Justices Sonia Sotomayor and Neil Gorsuch filed short separate opinions noting some reservations about the court's decision but going along with the outcome.

“Without doubt, the remedy Congress and the President chose here is dramatic,” Gorsuch wrote. Still, he said he was persuaded by the argument that China could get access to “vast troves of personal information about tens of millions of Americans.”

Some digital rights groups slammed the court’s ruling shortly after it was released.

“Today’s unprecedented decision upholding the TikTok ban harms the free expression of hundreds of millions of TikTok users in this country and around the world,” said Kate Ruane, a director at the Washington-based Center for Democracy & Technology, which has supported TikTok’s challenge to the federal law.

Content creators who opposed the law also worried about the effect on their business if TikTok shuts down. “I’m very, very concerned about what’s going to happen over the next couple weeks,” said Desiree Hill, owner of Crown’s Corner mechanic shop in Conyers, Georgia. “And very scared about the decrease that I’m going to have in reaching customers and worried I’m going to potentially lose my business in the next six months.”

At arguments, the justices were told by a lawyer for TikTok and ByteDance Ltd., the Chinese technology company that is its parent, how difficult it would be to consummate a deal, especially since Chinese law restricts the sale of the proprietary algorithm that has made the social media platform wildly successful.

The app allows users to watch hundreds of videos in about half an hour because some are only a few seconds long, according to a lawsuit filed last year by Kentucky complaining that TikTok is designed to be addictive and harms kids' mental health. Similar suits were filed by more than a dozen states. TikTok has called the claims inaccurate.

The dispute over TikTok's ties to China has come to embody the geopolitical competition between Washington and Beijing.

“ByteDance and its Chinese Communist masters had nine months to sell TikTok before the Sunday deadline,” Sen. Tom Cotton, R-Ark., wrote on X. “The very fact that Communist China refuses to permit its sale reveals exactly what TikTok is: a communist spy app. The Supreme Court correctly rejected TikTok’s lies and propaganda masquerading as legal arguments.”

The US has said it’s concerned about TikTok collecting vast swaths of user data, including sensitive information on viewing habits, that could fall into the hands of the Chinese government through coercion. Officials have also warned the algorithm that fuels what users see on the app is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that’s difficult to detect.

TikTok points out the US has not presented evidence that China has attempted to manipulate content on its US platform or gather American user data through TikTok.

Bipartisan majorities in Congress passed legislation and Biden signed it into law in April. The law was the culmination of a yearslong saga in Washington over TikTok, which the government sees as a national security threat.

TikTok, which sued the government last year over the law, has long denied it could be used as a tool of Beijing. A three-judge panel made up of two Republican appointees and a Democratic appointee unanimously upheld the law in December, prompting TikTok’s quick appeal to the Supreme Court.

Without a sale to an approved buyer, the law bars app stores operated by Apple, Google and others from offering TikTok beginning on Sunday. Internet hosting services also will be prohibited from hosting TikTok.

ByteDance has said it won’t sell. But some investors have been eyeing it, including Trump’s former Treasury Secretary Steven Mnuchin and billionaire businessman Frank McCourt. McCourt’s Project Liberty initiative has said it and its unnamed partners have presented a proposal to ByteDance to acquire TikTok’s US assets. The consortium, which includes “Shark Tank” host Kevin O’Leary, did not disclose the financial terms of the offer.

McCourt, in a statement following the ruling, said his group was “ready to work with the company and President Trump to complete a deal.”

Prelogar told the justices last week that having the law take effect “might be just the jolt” ByteDance needs to reconsider its position.



Software Companies Fight Back Against Fears that AI Will Kill Them

Software Companies Fight Back Against Fears that AI Will Kill Them
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Software Companies Fight Back Against Fears that AI Will Kill Them

Software Companies Fight Back Against Fears that AI Will Kill Them

Oracle's Mike Sicilia is the latest software CEO to wade in to the debate on whether artificial intelligence tools that heavily automate human tasks will mean the demise of his industry. His verdict was a resounding "no."

"You've all heard ... that new companies coding quickly using AI will spell the death of SaaS (software as a service)," he told analysts on a conference call on Tuesday. "I don't agree with that at all. I do think that AI tools and their coding capabilities would be a threat if we weren't adopting them, but we are, and very rapidly."

Sicilia was responding to Wall Street concerns that new AI tools can now perform some of the tasks that traditional software companies' products were built for, such as organizing customer information or guiding people through business processes.

Those worries led to a nearly $1 trillion rout in software stocks last month after heavyweight AI startup Anthropic introduced AI plugins for its Claude Cowork agent, a digital assistant that can automate such tasks. CEOs of software companies have since used their post-earnings conference calls to fight back.

Sicilia also laid out a case that Oracle was ahead of its smaller rival Salesforce, saying his company was using AI to actually build new products and automate full business processes, not just add AI features on top of existing tools.

Salesforce, for its part, has offered a different defense, with CEO Marc ⁠Benioff last ⁠month telling analysts that his company will outlast any so-called SaaS-pocalypse, a term for last month's share rout that hit software-as-a-service companies.

Benioff brought in Salesforce customers who positioned Salesforce as a company that has transformed itself into an enterprise platform that builds, deploys and governs those AI agents, using the company's mountains of proprietary customer and sales-process data. Even Jensen Huang, an AI pioneer and the CEO of chipmaker Nvidia , last month dismissed fears that AI would replace software and related tools, calling the idea "illogical."

UNIQUE DATA IS THE BEST DEFENSE

Oracle predicted on Tuesday that the AI boom would power its revenue for several quarters to come, sending its shares up 10% on Wednesday. The company owns deep enterprise data across finance, supply chain and human resources, which is hard for AI to replicate.

Oracle offers cheaper, efficient cloud systems and a database that ⁠can run on any major cloud, said Rebecca Wettemann, CEO of technology research firm Valoir. "That flexibility gives customers choice - and that’s a powerful position to be in as the AI ecosystem evolves," she said.

Nearly a dozen tech analysts and investors surveyed by Reuters said the owners of years of exclusive financial, legal, design, or technical data likely have the best defense.

"Proprietary data is the deepest moat by far," said James St. Aubin, chief investment officer at Ocean Park Asset Management.

In the case of Salesforce, while startups are nibbling away at the company's dominance in the customer-relationship software sector, its software remains deeply embedded in corporate systems, with its real-time data platform managing more than 50 trillion records. It is also trying to reinvent itself as an AI-agent company through its Agentforce service - still a small business.

Some analysts said Salesforce is also hard to replace because businesses have spent years building their day-to-day operations around the company's products and the cost of switching away is high.

But AI is beginning to erode that barrier, making it easier to generate code and build applications with far less human effort and expense.

While businesses experiment with isolated AI tools, Salesforce has built a comprehensive system that helps it stand out, said Madhav Thattai, executive vice president of Salesforce AI, adding ⁠that the company benefits from decades of ⁠enterprise experience.

Oracle did not return emails seeking comment.

NOT ALL IS DOOM AND GLOOM

But concerns about the demise of traditional software companies have lingered, and analysts said not all data is equal.

Employee data and payroll company Workday has plenty of data, but analysts said its core products run on HR and payroll data, which tend to follow uniform, industry-standard formats. That means an AI company can more easily learn from or replicate tools built on that kind of data.

Workday brought back its founder, Aneel Bhusri, as CEO last month to lead the company "in the rapidly evolving AI era."

But the company's shares have declined by more than a third this year, hitting more than a five-year low last month after a sluggish sales forecast. Bhusri said last month that Workday systems embed two decades of business processes that AI cannot replicate.

"AI, for all of its incredible capabilities, is probabilistic by nature," he told analysts on the post-earnings conference call. "It reasons, predicts and recommends based on patterns and likelihoods. Maybe it will eventually become a state machine - a system that follows the same steps and gets the same result, every time - but it is not there today."

Asked for a comment for this story, a Workday spokesperson referred Reuters to Bhusri's comments on the call.

Some analysts believe the enterprise software industry will prove more resilient than valuations currently indicate, arguing that higher productivity brought by AI could spur hiring and growth.

"I would not write the obituary for some of these companies just yet because there is an opportunity for them to reinvent themselves with AI," Ocean Park's Aubin said.


Meta Unveils Plans for Batch of In-house AI Chips

Mark Zuckerberg outside the court where he testified in a landmark trial (Reuters)
Mark Zuckerberg outside the court where he testified in a landmark trial (Reuters)
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Meta Unveils Plans for Batch of In-house AI Chips

Mark Zuckerberg outside the court where he testified in a landmark trial (Reuters)
Mark Zuckerberg outside the court where he testified in a landmark trial (Reuters)

Meta Platforms on Wednesday unveiled a roadmap of four new chips that the company is making in-house, as it rapidly expands its data centers.

Like many big tech companies such as Alphabet and Microsoft, Meta has invested heavily in building a team that can design chips in-house in addition to purchasing off-the-shelf products made by Nvidia and Advanced Micro Devices.

Making chips designed to tackle the specific types of data crunching Meta requires can lead to designs that use less energy and at a better cost.

The new chips are part of the company's Meta Training and Inference Accelerator (MTIA) program and the first of the new chips called the MTIA 300 is in use powering the company's ranking and recommendation systems. The other three will be rolled out this year and in 2027, with the final two chips, the MTIA 450 and 500 being designed to perform inference, the process when an AI model such as the one that powers the ChatGPT app responds to customer queries and requests.

"We see inference demand exploding at the moment and that's what we're currently focused on," Yee Jiun Song, Meta's vice president of engineering, said in an interview.

Meta has had some success with inference chips but has struggled with its long-time ambitions to make a generative AI training chip, capable of building the large models that power AI apps.

Beginning with the MTIA 400, which the company says is on the path to being used in its data centers, Meta has designed an entire system around the chips, which is roughly the size of several server racks and includes a version of liquid cooling.

The company plans to release the new chips at six-month intervals because it is rapidly expanding the number of data centers it uses to run apps like Instagram and Facebook, Song said.

"That is the reality of how quickly our infrastructure is being built out," Song said.

The company said in January it expects capital spending of between $115 billion and $135 billion this year.

Meta contracts Broadcom to help with some elements of the designs, though Song did not specify which chips. The company uses Taiwan Semiconductor Manufacturing Co to fabricate the processors.

In February, Meta signed big deals with Nvidia and AMD to buy tens of billions of dollars worth of chips.


SDAIA Unveils Logo for Saudi Arabia's Year of Artificial Intelligence 2026

The logo integrates symbolism in its elements
The logo integrates symbolism in its elements
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SDAIA Unveils Logo for Saudi Arabia's Year of Artificial Intelligence 2026

The logo integrates symbolism in its elements
The logo integrates symbolism in its elements

The Saudi Data and AI Authority (SDAIA) has launched the official logo for the Year of Artificial Intelligence 2026, after it was approved by the Cabinet.

This move underscores the Kingdom’s commitment to advancing artificial intelligence, reinforcing its role as a global hub in data and AI, and highlighting key achievements in this cutting-edge sector.

The logo integrates symbolism in its elements: the palm tree signifies the national emblem and the Kingdom’s cultural heritage, while the letters ‘AI’ highlight the technological and innovative aspects central to promoting digital inclusion as part of Vision 2030.

The palm tree’s green color symbolizes the Saudi flag and the Kingdom’s national identity, while the accompanying blue color represents digital technology and the Kingdom’s progression toward advanced technological development.

The logo is accompanied by the official hashtag for the Year of Artificial Intelligence: #SaudiAIYear.