TikTok’s future in the U.S. is shrouded in uncertainty, primarily due to national security concerns and some unconventional ideas proposed by former President Donald Trump. One such idea has garnered significant attention: creating a U.S. sovereign wealth fund to potentially purchase TikTok outright. This proposal is unprecedented in the U.S. and adds another layer to the already complex situation surrounding the app.
Earlier this year, a law was enacted requiring ByteDance, TikTok’s Chinese parent company, to sell its U.S. operations or face a potential ban. The main concern is that the Chinese government could access TikTok’s user data, which raised national security alarms. In response, Trump issued an executive order to delay the ban, giving ByteDance more time and allowing TikTok to continue operations in the U.S., though its presence in Apple and Google app stores was initially suspended until further clarity was provided.
TikTok’s popularity in the U.S. has only surged, with over 52 million downloads in 2024. Despite its continued success, the threat of a ban looms large, and ByteDance still faces pressure to divest its U.S. operations. Trump has framed the TikTok situation as both a national security issue and a potential business opportunity. He claimed that the U.S. is entitled to 50% of TikTok due to the government’s involvement in facilitating any sale and warned China against interfering, threatening tariffs if ByteDance attempts to block or delay the process.
In the meantime, several potential buyers have emerged, including Frank McCourt, former owner of the Los Angeles Dodgers, and tech entrepreneur Jesse Tinsley, who is preparing a cash offer. Notably, YouTube star MrBeast has joined Tinsley’s group, signaling interest in acquiring TikTok.
However, Trump’s idea of using a U.S. sovereign wealth fund to purchase TikTok could bypass private buyers altogether. On February 3, Trump signed an executive order directing the Treasury and Commerce Departments to create a plan for such a fund, with 90 days to develop it. Sovereign wealth funds are typically used by countries like Norway, Saudi Arabia, and Singapore to invest surplus government revenue. This proposal raises several questions: How would the fund be structured? Where would the money come from? What governance model would it follow?
Creating such a fund would require congressional approval, which could be difficult given the polarized political climate. While the plan remains in its early stages, Trump appears resolute in exploring it, suggesting that if a favorable deal can be struck, it may move forward, possibly including TikTok.
If the U.S. does create a sovereign wealth fund to purchase TikTok, it would represent a dramatic shift in how the government approaches tech investments and foreign-owned companies operating within the U.S. However, such a move could raise significant concerns about government influence over social media platforms, including issues related to free speech, censorship, and market competition. For now, TikTok’s future remains uncertain, caught between government intervention, corporate interest, and national security debates.