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What Happens After the TikTok Ban?

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The U.S. Supreme Court’s decision on Friday denied TikTok’s request to avoid a ban, putting the app at risk of shutting down in just two days, potentially affecting millions of users in the U.S. who rely on it for entertainment, e-commerce, and advertising. The ban stems from a 2024 national security law requiring TikTok’s parent company, ByteDance, to sell the app or face its closure in the U.S. by January 19.

While President-elect Donald Trump, set to take office on Monday, has hinted at seeking a political solution, the immediate effects of the ban remain uncertain.

What Happens to the App?

  • TikTok will be unavailable for download from Apple and Google app stores, and updates to the app will be prohibited. The law restricts any entity from facilitating the app’s download or maintenance.
  • Oracle, which hosts TikTok’s U.S. user data, may experience disruptions in its work with the app.
  • Despite the ban, TikTok plans to continue paying its 7,000 U.S. employees.

How Will Users Be Affected?

  • TikTok’s 170 million U.S. users who have already downloaded the app will still be able to use it for a time, but the lack of updates could render it obsolete. A web-based version may emerge but will likely offer fewer features.
  • Some users might attempt to access TikTok through virtual private networks (VPNs) to bypass the ban.
  • Alternative Chinese social media platforms, such as Xiaohongshu (RedNote), could see an increase in U.S. users.
  • Content creators on TikTok are redirecting their followers to platforms like Instagram and YouTube to prepare for the potential shutdown.

What Will Advertisers Do?

  • Advertisers have started to devise contingency plans, aware that a TikTok ban would disrupt their campaigns. If the ban is enforced, over $11 billion in annual U.S. ad spending could shift to other platforms.
  • Marketers will be watching Meta, Snap, and others to see who benefits from the spending shift.
  • Some advertisers may continue their campaigns beyond January 19 to monitor TikTok’s performance in the U.S. before reassessing their investments.

What Happens to U.S.-China Trade Relations?

  • A TikTok ban could escalate the already tense trade relations between the U.S. and China, following previous export restrictions on American semiconductor technology to Beijing.
  • Analysts suggest that President Trump could use a potential reversal of the ban as leverage in negotiations with China, possibly securing concessions or other trade benefits.

Who Are the Potential Buyers?

  • Despite TikTok’s repeated stance that it cannot be sold, some buyers are still interested. Billionaire Frank McCourt, former owner of the Los Angeles Dodgers, has valued TikTok without its algorithm at approximately $20 billion.
  • Reports have surfaced suggesting that Chinese officials might be considering a sale of TikTok’s U.S. operations to Elon Musk, though TikTok has dismissed this as “fiction.”

 

HPE Secures $1 Billion AI Server Deal for Elon Musk’s X

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Hewlett Packard Enterprise (HPE) has finalized a deal valued at over $1 billion to supply Elon Musk’s social media platform, X, with servers optimized for artificial intelligence (AI) workloads, according to a report by Bloomberg News. The agreement, finalized late last year, comes amid rising demand for AI-specific hardware from businesses leveraging AI applications.

Bloomberg’s sources indicated that HPE secured the deal over competing bids from Dell Technologies and Super Micro Computer, both of which also sought to provide the necessary equipment for X. However, HPE has declined to comment on the details of the deal.

The demand for AI servers has surged as companies, including Musk’s various ventures such as Tesla and xAI, seek hardware capable of supporting advanced AI tasks. Following the news, shares of HPE saw a 1% rise in afternoon trading.

 

European Central Bank Joins Bluesky, Rival to Elon Musk’s X

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The European Central Bank (ECB) has started posting on the Bluesky platform, a competitor to Elon Musk’s X, formerly known as Twitter. The ECB’s move to join Bluesky comes as Musk intensifies his political campaigning in Europe, including urging voters in Germany to support a far-right party. Bluesky is one of several platforms attempting to challenge X’s dominance following Musk’s acquisition of the site.

An ECB spokesperson explained that the central bank aims to diversify its social media presence and had started engaging with several new platforms last year, making Bluesky the latest addition. The ECB’s initial post on Bluesky included an interview with its chief economist, Philip Lane, which was also shared on X. The ECB plans to continue using X alongside its new presence on Bluesky.

Musk’s political influence on X has been controversial, with critics accusing the platform of enabling the spread of misinformation. Recently, Musk hosted the leader of Germany’s far-right Alternative for Germany (AfD) party on X, an interaction that the European Commission has stated it will monitor for disinformation. Musk has also supported Italy’s right-wing Prime Minister, Giorgia Meloni.

In contrast, the ECB, under President Christine Lagarde, has focused on issues like gender equality and climate change. Musk, a vocal critic of diversity, equity, and inclusion policies, has also been outspoken against climate change efforts, supporting figures like former President Donald Trump, who has labeled climate change a hoax. Musk’s stance on the Federal Reserve has been similarly critical, calling the institution “absurdly overstaffed” and advocating for its dissolution.

Despite Bluesky’s recent growth, with 2.5 million new users added after Trump’s election, it remains much smaller than its competitors. Threads has around 252 million monthly active users, while X has approximately 317 million, according to Sensor Tower data. However, Bluesky has faced challenges with EU regulators, who criticized the platform last year for not providing essential details about its user base in the region.