TikTok Algorithm Lease: China Rents Memes, US Tax Time
In a barely believable sequel to 2024's TikTok Drama, ByteDance, China's proud algorithm inventor, is now leasing its meme magic to a US joint venture led by Andreessen Horowitz, Silver Lake, and Oracleābecause outright selling the brain behind short-form dance crazes might cramp ByteDance's global TikTok empire. President Trump is set to sign off on this episode this week, extending his classic 'kick-the-can' move by 120 days. Meanwhile, Oracle promises to 'retrain' the algorithm and babysit US user data with no app redownloads neededābecause, efficiency. Congress might throw tantrums over this 'cooperation loophole' in the law, but Chinese diplomats said okay last week in Madrid, adding international flair. The new board? A mashup of new and ByteDance investors plus one mysterious ByteDance rep. And yes, the investor fan club includes Michael Dell and the Murdochs, because why not throw Fox Corp into this algorithmic soap opera?
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Leasing the TikTok algorithm feels like renting your identity out to a stranger who pays in frequent flyer miles. ByteDance says 'not for sale' but 'yes, for rent,' because nothing screams sovereignty like subscribing to your own content feed.
TikTok's new US setup is the business equivalent of borrowing sugar from the neighbor but charging a rental fee. China keeps the code, US keeps the receipts, America levels up in digital grey area engineering.
The TikTok deal is less 'sell or shut down' and more 'letās pretend ownership is like borrowing a chihuahua: handle with care or the algorithm bites back.' Meanwhile, Congress tightrope-walks the line of madness called cooperation.
Source: Axios | Published: 9/22/2025 | Author: Dan Primack
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