Technologies

Trump Gives TikTok Another 75 Days to Strike a Sale

The president says he’s signing an executive order to push back enforcement of the ban again, pushing back the previous deadline of Saturday.

President Donald Trump is giving TikTok more time to sell its US operations, saying that «tremendous progress» has been made toward a deal and pushing off enforcement of a ban that was set to kick in Saturday.

In a Friday afternoon Truth Social post, Trump said that despite that progress, the deal still needs more work, so he’s signing an executive order giving TikTok 75 more days, taking the deadline out to June 19. The move prevents the wildly popular video app from potentially going dark in less than a day.

Trump went on to say that his administration will continue to work with China and credited the tariffs he enacted earlier this week, calling them «the most powerful economic tool» and «very important» to national security.

«We do not want TikTok to ‘go dark,'» Trump said in his post. «We look forward to working with TikTok and China to close the Deal.»

Both TikTok and the Chinese government have long opposed a sale of the company’s US operations and it remains unclear as to if their positions have changed. TikTok didn’t immediately return an email seeking comment.

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

China on Friday reacted to the tariffs Trump spoke of by matching them with its own on US goods, escalating the trade war between the two countries and sending stock markets around the world tumbling. The Dow Jones Industrial Average plunged more than 2,200 points and the Nasdaq composite lost 5.8% in afternoon trading — its biggest drop in five years.

The TikTok ban delay wasn’t unexpected. Several potential bidders for TikTok’s US operations have made their interest known in just the past few days, and Trump has been meeting with administration officials this week to discuss possible deals and ownership structures.

According to recent reporting by The New York Times, one plan included private equity firm Blackstone and the tech company Oracle, while another involved a last-minute bid from Amazon.

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. TikTok continues to deny those accusations.

The law requiring the sale was passed by Congress last year with overwhelming bipartisan support and signed into law by then-President Joe Biden. Free speech and other groups sued to overturn the law on First Amendment grounds, but it was upheld by the US Supreme Court in January.

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

What does the law do?

The law aims to force TikTok’s China-based parent company, ByteDance, to sell to a buyer American officials are OK with and guarantee 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.

The new executive order pushes the deadline back to June 19, which is Juneteenth, a federal holiday.

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

On March 26, Trump said he would consider lowering tariffs on Chinese goods if that country’s government approved a sale of TikTok’s US operations. He also at that time reiterated his willingness to push the deadline back if needed.

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.»

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