Business
TikTok has finalized its U.S. joint venture, ending saga over its fate
The long and winding road over the fate of TikTok — the enormously popular social video platform that has been a force in American youth culture and entertainment — has come to an end.
After years of questions about TikTok’s future in America, the social media platform and its Chinese parent company, ByteDance, have finalized the app’s U.S. joint venture.
The announcement closes the chapter on a saga that began six years ago when President Trump during his first term sought to ban the platform, citing national security concerns involving ByteDance.
But Trump shifted his views on the platform after ByteDance and its affiliates agreed to divest majority ownership of U.S. operation to an American-led investor group.
The joint venture deal was established under an executive order signed by Trump in September.
In an announcement posted Thursday, TikTok said the U.S. joint venture now has three managing investors: Silver Lake, Oracle and Emirati investment firm MGX, each holding 15%, with ByteDance retaining 19.9% of investments.
The new firm will be headed by Adam Presser, who previously worked as TikTok’s head of operations and trust and safety. He will join a seven-member, majority-American board of directors that includes TikTok’s Chief Executive Shou Zi Chew.
In a Truth Social post, Trump thanked Chinese leader Xi Jinping “for working with us and, ultimately, approving the Deal” and said it was a “dramatic, final, and beautiful conclusion.”
“I am so happy to have helped in saving TikTok!” he wrote. “I only hope that long into the future I will be remembered by those who use and love TikTok.”
ByteDance had been under pressure to divest its ownership in the app’s U.S. operations or face a nationwide ban after Congress passed a law that went into effect a year ago.
“China’s position on TikTok has been consistent and clear,” Guo Jiakun, a Chinese Foreign Ministry spokesperson in Beijing, said Friday according to the Associated Press.
Under new safeguards, there will be more protections for users’ data and algorithms, as well as better content moderation and software assurances, the company said.
The new version will operate under “defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” the company said in its statement Thursday.
These protections will be secured by Oracle’s cloud environment. The tech company’s Executive Chairman Larry Ellison has also been making headlines for attempting to purchase Warner Bros. Discovery through Paramount.
Ramesh Srinivasan, professor of information studies at UCLA, said he finds the deal to be “deeply concerning.” He said TikTok will become more similar to American-owned social media applications when it comes to access to data and how it’s monetized.
“But at the same time, the data is going to be captured by folks like Mr. Ellison, who is very close to the president,” said Srinivasan. “That raises major concerns about the incredibly close affinity the president has with these tech oligarchs. This means TikTok will increasingly serve the dictates of this administration.”
Srinivasan also raises concerns that this deal could influence what people can see on their algorithms, especially when it comes to global news.
He added, “Our younger people may end up getting manipulated without any disclosure or knowledge.”
According to TikTok, there are over 200 million U.S. users and 7.5 million businesses that use the platform.
The news, announced last month, comes as a relief to many U.S.-based influencers, many of whom operate in Southern California, who rely on the social media platform for their livelihoods. The same day the news of the joint venture broke, TikTok hosted its inaugural TikTok Awards at the Hollywood Palladium. Keith Lee, a food reviewer with over 17 million followers, celebrated the announcement among other attendees.
“[TikTok] is the best way to reach people and I know so many people who rely on it to support their families,” said Lee, in an interview with The Times. “For me, it’s my career now so I can’t imagine it not being around.”
The app is largely responsible for reshaping the way young Americans shop and consume entertainment. One example of that can be found in the TikTok Shop platform where small businesses and brands sell their products directly to consumers and engage influencers to help with promotion. In many ways, the platform can resemble Gen Z’s version of QVC.
The app’s roots date back to 2014, when Musical.ly, an app of a similar nature was launched in Shanghai. In 2016, Chinese tech company ByteDance launched a similar platform in China called Douyin. As the apps grew in popularity separately, ByteDance picked up on its potential, purchased Musical.ly in 2017 and combined all these platforms into one, named TikTok. Over the next few years, the app began its rapid ascent , hooking in users with a curated algorithm and viral trends.
The deal removes a shadow that was cast over the future of TikTok, which has become one of the world’s most dominant social media platforms and has a large presence in Culver City. The company’s business in the U.S. had been uncertain for many years amid legislators’ security concerns about ByteDance’s ties to China.
Trump allowed TikTok to keep operating in the country and in September signed the executive order outlining the new joint venture.
Business
Ex-Google engineer convicted of stealing AI trade secrets to benefit China
A former software engineer at Google has been convicted of stealing artificial intelligence trade secrets for the benefit of China, the U.S. Department of Justice said.
A federal jury on Thursday convicted Linwei Ding, 38, of seven counts of economic espionage and seven counts of theft of trade secrets after an 11-day trial in the U.S. District Court in the Northern District of California.
The verdict marked the Justice Department’s first conviction on AI-related economic espionage charges, according to a statement from Roman Rozhavsky, assistant director of the FBI’s counterintelligence and espionage division.
Ding’s attorney did not respond to an email seeking comment Friday.
Ding stole more than 2,000 pages of confidential information containing Google’s AI trade secrets from the company’s network and uploaded them to his personal Google cloud account between May 2022 and April 2023, according to evidence presented at trial.
At the same time, he secretly worked with two Beijing-based technology companies, staging discussions with one early-stage company to be its chief technology officer, and later acting as founder and chief executive of a second startup, prosecutors said. He told potential investors that he could build an AI supercomputer by copying Google’s technology, court documents state.
Ding downloaded the trade secrets to his personal computer less than two weeks before he resigned from Google in December 2023, prosecutors said. He also applied for what prosecutors described as a Chinese government-sponsored “talent plan” intended to attract people to contribute to the country’s economic and technological growth.
His application stated that he planned to “help China to have computing power infrastructure capabilities that are on par with the international level,” prosecutors said.
“This conviction reinforces the FBI’s steadfast commitment to protecting American innovation and national security,” FBI Special Agent in Charge Sanjay Virmani said in a statement.
“The theft and misuse of advanced artificial intelligence technology” to benefit China, Virmani added, “threatens our technological edge and economic competitiveness.”
Ding faces a maximum possible sentence of 10 years in prison for each count of theft of trade secrets and 15 years in prison for each count of economic espionage. He’s next due in court Tuesday for a status conference.
“We’re grateful to the jury for making sure justice was served today, sending a clear message that stealing trade secrets has serious consequences.” Lee-Anne Mulholland, vice president of regulatory affairs for Google, said in a statement.
Business
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Business
Dream of owning a flying car? This California company is already selling them
A future with flying cars is no longer science fiction — all you need to order your own is about $200,000 and some hope and patience.
The Palo Alto-based company Pivotal has been developing the technology since 2009 and is nearly ready to bring it to market. The company’s founder Marcus Leng was the first to fly in its real-life version of a flying car in 2011.
Leng engineered an ultralight, electric-powered vertical takeoff and landing aircraft known as an eVTOL. Other VTOL aircraft, such as helicopters, had existed for decades, but Leng’s invention was fixed-wing and didn’t rely on gas.
The Canadian engineer dubbed his creation BlackFly and spent years working on it in secret.
The company moved to the Bay Area in 2014 and by 2018 had developed a second version of BlackFly that laid the groundwork for Helix, the aircraft Pivotal now offers for sale.
Pilot Aeddon Chipman readies the Pivotal BlackFly in Watsonville, Calif.
“The company kind of came out of stealth at that point and said, ‘This is what we’re up to,’ ” said Pivotal Chief Executive Ken Karklin, who took over company leadership from Leng in 2022.
Those who are curious — and wealthy — can reserve a Helix today with a $50,000 deposit. The aircraft starts at $190,000 with the option of purchasing a transport trailer for $21,000 and a charger for $1,100.
A customer who makes their reservation today could receive their aircraft in nine to 12 months, Karklin said. It takes less than two weeks to learn how to fly it.
In order to complete Pivotal’s flight certification training, a customer has to pass the FAA knowledge test and complete ground school. Training, which takes place at the company’s Palo Alto headquarters and at the Monterey Bay Academy Airport, teaches customers how to control and maintain the aircraft, as well as how to transport and assemble it.
Pivotal, formerly known as Opener, publicly introduced the BlackFly in July 2018. In October 2023, the company unveiled Helix, calling it the first scalable aircraft of its kind.
The Pivotal Black Fly takes off near Watsonville, Calif.
A handful of California companies are using eVTOL technology to develop what they call air taxis to shuttle people around congested cities. But Pivotal says it offers something different: a single-person aircraft for recreational use and short-haul travel that also has the potential to support emergency response and military operations.
It is uncertain how fast the company and others like it can ramp up production and how communities will react. Not everyone is on board. Darlene Yaplee, president of the Aviation-Impacted Communities Alliance, said there are concerns about having different types of aircraft in limited airspace.
Pivotal has around six early-access customers who already own a version of the BlackFly and are flying it for fun. The aircraft is designed to be accessible and user-friendly, and you don’t need a pilot’s license to operate it.
Tim Lum, a Washington state resident, bought his BlackFly in 2023. He’s since taken it on around 1,200 flights in 100 different locations across the U.S.
The Pivotal BlackFly cruises in the air.
Lum, who isn’t an FAA-certified pilot, said owning a BlackFly is like a dream. He can take off and land anywhere with 100 feet of clearance and permission if on private land. He also uses small, private airports.
The aircraft is stored in Twisp, Wash., but Lum has towed it coast to coast, stopping to fly in states such as Florida, Montana and California. He shares it with family and friends who also trained to get certified by the company.
“Something really happens to the synapses in my brain when I’m flying,” Lum said. “Things get sorted out and things make sense. This has opened up more doors for me and the people that I care about than money can buy.”
Pilot Aeddon Chipman launches the Pivotal BlackFly.
The Helix is classified as a Part 103 ultralight aircraft, the same regulatory class as a hang glider. It’s meant to be flown less than 200 feet high, in unregulated airspace, and weighs about 355 pounds empty.
Karklin said the company has received about a year’s worth of reservations for Helix. He did not specify the number of customers but said it was more than 10.
Karklin has been getting Pivotal ready for a wider market. The company, which has more than 100 full-time employees, has trained just over 50 people to fly its aircraft. Customers and employees have been trained.
Pivotal’s business will operate across three segments, Karklin said, including personal use, public safety and defense.
“You’re going to see business generated by all three,” he said. “We talk about recreation and short hop travel, and sometimes folks can be a little dismissive about that. I think that’s a huge mistake.”
The Pivotal BlackFly in flight.
In 2023, Pivotal leased eight aircraft to an innovation arm of the U.S. Air Force and defense technology firm MTSI. The Air Force conducted nondevelopmental testing and evaluation of the vehicle that informed the latest version of Helix.
Helix will have an electric range of about 30 minutes and a cruise speed of 62 mph, the company said. It takes 75 minutes to charge it using a 240 volt charger.
The noise produced by the aircraft during takeoff and landing is equivalent to a couple of leaf blowers, Karklin said. When flying it is overhead, someone on the ground might not be able to hear it.
Karklin said the simplicity of the aircraft comes with lower cost, lower weight and higher safety. The aircraft, which has only 18 moving parts, is full of redundancy to prevent system failures.
It’s been independently evaluated by the Light Aircraft Manufacturers Assn., and Pivotal’s quality management system has received a certification from SAE International, which sets aviation safety standards.
The company completes flight demonstrations frequently at the Monterey Bay Academy Airport, near the coast in Watsonville.
When Helix flies, it turns heads, Karklin said.
“It’s starting to get very real,” he said. “More people can actually see it in person and touch it and feel it. And then they want to get on.”
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