Technologies

TikTok Counts Down To Another Potential Ban

With just days to go before the sale deadline, President Donald Trump seems confident he can broker a deal.

TikTok is once again counting down to a federal ban, unless some kind of a deal is struck by the end of the week.

The popular social media app faces a Saturday deadline to sell itself to a buyer deemed fit by US officials or face being banned in this country.

However, a lot could happen before then. Several potential bidders have made their interest known in recent months, and it’s entirely possible that President Donald Trump could once again choose to extend the sale deadline.

Most recently, Trump told the press on Air Force One late Sunday that «there’s tremendous interest in TikTok.» He added that he would «like to see TikTok remain alive.» Trump also said that «we have a lot of potential buyers» and that the administration is «dealing with China,» which has long opposed a sale.

Last week, Trump said he would consider lowering tariffs on Chinese goods if that country’s government approved a sale of TikTok’s U.S. operations. He also at that time reiterated his willingness to push the deadline back if needed.

Also last week, a trio of Democratic senators sent Trump a letter requesting information on any efforts to prevent the ban from going into effect and urging the administration to work with Congress on any potential resolutions. The group had previously introduced legislation that would delay the ban until Oct. 16, but it was blocked by Republicans.

Read more: TikTok Backups: 6 Similar Apps for Your Daily Dose of Fun

Lawmakers in both political parties have long voiced concerns that TikTok could be a threat to national security and could be used by the Chinese government to spy on Americans or spread disinformation to further China’s agenda. The law requiring the sale was passed by Congress last year with overwhelming bipartisan support and signed into law by then-President Joe Biden.

TikTok continues to deny those accusations, and both it and the Chinese government have said they oppose a sale. It’s unclear if they’ve changed their positions. A spokesperson for TikTok didn’t return a Thursday request for comment.

So what’s next for TikTok? Here’s what you need to know.

What does the law do?

The law is aimed at forcing TikTok’s China-based parent company ByteDance to sell TikTok to a buyer American officials are OK with, as well as guaranteeing that ByteDance no longer has access to US user data or control over the TikTok algorithm.

TikTok was given nine months to comply, hence the original Jan. 19 sale deadline, at which point the government could require the removal of its app from US app stores and that other tech companies stop supporting the app and website.

TikTok shut down in the US the night of Jan. 18, citing the ban, but came back online the next morning after Trump made assurances that he would not immediately enforce it. Trump later formalized that promise by signing an executive order that directed the attorney general to not enforce the ban for 75 days, effectively moving the deadline to April 5.

Read more: TikTok Loves to Give Financial Advice. But Don’t Believe Everything You Hear

What’s Trump’s take?

After originally calling for a ban during his first presidency, Trump said during the 2024 campaign that he wasn’t in favor of one and pledged to «save TikTok,» though he didn’t specify how he’d do that.

Trump also has floated the idea of the US taking a 50% stake in the company as part of a joint venture, but hasn’t given specifics as to how that would work.

TikTok CEO Shou Chew was one of several high-profile tech executives to attend Trump’s inauguration in January, just hours before Trump would sign the order granting the 75-day extension.

Previous to that, during a press conference in December, Trump pointed to the role TikTok played during the election, crediting it with helping him pick up the votes of young people.

«TikTok had an impact, and so we’re taking a look at it,» Trump said. «I have a little bit of a warm spot in my heart. I’ll be honest.»

Is a deal coming?

Trump told reporters earlier this month that a deal could come soon. He didn’t offer any details about the potential buyers, but said the administration was in talks with «four different groups» about TikTok.

Vice President JD Vance, whom Trump has tapped to help strike a deal, has also expressed confidence that a sale agreement could be largely in place by April 5.

«There will almost certainly be a high-level agreement that I think satisfies our national security concerns, allows there to be a distinct American TikTok enterprise,» Vance said in a March 14 interview with NBC News.

One of the highest-profile bidders to come forward is a consortium led by billionaire investor Frank McCourt that also includes Kevin O’Leary of Shark Tank and Reddit co-founder Alexis Ohanian.

If successful, the group says it would turn the app into an «upgraded internet,» leaving behind TikTok’s algorithm, long considered to be the addictive secret sauce behind the app, in favor of giving users more control over what they see and how their data is used.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know