Algorithm question complicates TikTok sale: Report

Sale talks for TikTok’s U.S. operations have been complicated by key question of wher app’s core algorithms can be included as part of a deal, according to a report in Wall Street Journal that cited unidentified people familiar with matter.

Those algorithms decide what videos users see without first requiring m to follow or users or specify ir preferences. Journal report stated algorithms were considered part of deal negotiations up until Friday.

That's when Chinese government introduced export restrictions on artificial intelligence techlogy that appear to cover content-recommendation algorithms such as one powering TikTok. move followed President Donald Trump's effort to force a sale of TikTok's U.S. operations by Sept. 20.

Those export restrictions mean that TikTok’s Chinese owner, ByteDance Ltd., would have to obtain a license to export any restricted techlogies to a foreign company. question is wher its algorithms would need Chinese government approval for transfer, and if so, wher Beijing would sign off.

Journal report said both prospective buyers and seller, ByteDance, are trying to figure that out. Prospective buyers for U.S. TikTok assets include a Microsoft-Walmart team-up and, reportedly, Oracle.

Representatives for TikTok and Oracle did t immediately respond to requests for comment on Tuesday. Microsoft and Walmart declined to comment.

(Im Credit Pixabay)