TikTok Goes Dark for US Users, Company Pins Hope on Trump

A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
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TikTok Goes Dark for US Users, Company Pins Hope on Trump

A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)
A person holds an iPhone with a message on their TikTok app in Avondale Estates, Georgia, USA, 18 January 2025. (EPA)

TikTok stopped working in the United States late on Saturday and disappeared from Apple and Google app stores ahead of a law that takes effect Sunday requiring the shutdown of the app used by 170 million Americans.

President-elect Donald Trump said earlier in the day he would "most likely" give TikTok a 90-day reprieve from the ban after he takes office on Monday, a promise TikTok cited in a notice posted to users on the app.

TikTok, which is owned by China's ByteDance, told users attempting to use the app around 10:45 p.m. ET (0345 GMT): "A law banning TikTok has been enacted in the US. Unfortunately, that means you can't use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned."

Other apps owned by ByteDance, including video editing app Capcut and lifestyle social app Lemon8, were also offline and unavailable in US app stores as of late Saturday.

"The 90-day extension is something that will be most likely done, because it's appropriate," Trump told NBC. "If I decide to do that, I'll probably announce it on Monday."

It was not clear if any US users could still access the app, but it was no longer working for many users and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, warned on Friday it would go dark in the US on Sunday unless President Joe Biden's administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.

Under a law passed last year and upheld on Friday by a unanimous Supreme Court, the platform has until Sunday to cut ties with its China-based parent or shut down its US operation to resolve concerns it poses a threat to national security.

The White House reiterated on Saturday that it was up to the incoming administration to take action.

"We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday," press secretary Karine Jean-Pierre said in a statement.

TikTok did not respond to a request for comment on the new White House statement.

The Chinese embassy in Washington on Friday accused the US of using unfair state power to suppress TikTok. "China will take all necessary measures to resolutely safeguard its legitimate rights and interests," a spokesperson said.

USERS MOVE TO ALTERNATIVES

Uncertainty over the app's future had sent users - mostly younger people - scrambling to alternatives including China-based RedNote. Rivals Meta and Snap had also seen their share prices rise this month ahead of the ban, as investors bet on an influx of users and advertising dollars.

"This is my new home now," wrote one user in a RedNote post, tagged with the words "tiktokrefugee" and "sad".

Minutes after TikTok's US shutdown, other users took to X, formerly called Twitter.

"I didn’t really think that they would cut off TikTok. Now I’m sad and I miss the friends I made there. Hoping it all comes back in just a few days," wrote @RavenclawJedi.

NordVPN, a popular virtual private network, or VPN, allowing users to access the internet from servers around the world, said it was "experiencing temporary technical difficulties".

Web searches for "VPN" spiked in the minutes after US users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform's e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week in what one executive described as a "hair on fire" moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Trump, who has said he wants to pursue a "political resolution" of the issue and last month urged the Supreme Court to pause implementation of the ban.

TikTok CEO Shou Zi Chew plans to attend the US presidential inauguration and attend a rally with Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok's US operations to billionaire and Trump ally Elon Musk, though the company has denied that.

US search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok US, a source familiar with the company's plans told Reuters. Perplexity would merge with TikTok US and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US.



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.