Business
How TikTok Evaded a Ban Again and Again, Until Now
In mid-2023, TikTok had just eluded an effort in Congress to ban the video app, the latest Houdini-like escape for the young tech company. For several years, during both Republican and Democratic administrations, lawmakers and officials had trained their sights on the app, saying its Chinese ownership posed a national security risk.
Inside TikTok, a small group of employees started formulating a plan to ensure that the regulatory threat would never reappear, three people with knowledge of the project said. The employees pitched a campaign of TV commercials, messages to users and other public advocacy to turn Washington’s attention elsewhere. They called it Project Achilles.
But TikTok’s leaders lost interest by the end of the year. Several, including Shou Chew, its chief executive, seemed to think the threat of a ban was no longer imminent, the people said. Project Achilles never became reality.
The misreading of the political winds could not have been greater.
Just a few months later, Congress overwhelmingly passed and President Biden signed a law that would ban TikTok unless the app’s owner, ByteDance, sold it to a non-Chinese company. On Friday, the Supreme Court upheld the law. TikTok is set to be removed from app stores on Sunday, when the law goes into effect.
The ban will end a remarkable eight-year roller-coaster ride for TikTok in the United States. The company wriggled its way out of political danger time and again. The threats to its very existence came so often, from so many directions, dealing with them became almost second nature for executives — perhaps to the point of complacency.
All the while, TikTok reached new heights of popularity and public influence. It boasts 170 million monthly U.S. users, giving the company confidence that those masses could help beat back whatever regulators aimed its way. Behind the scenes, TikTok conducted secretive negotiations with government officials and advertising blitzes aimed at rescuing it.
But in the end, the company ran into a well-organized and focused effort among Washington officials that it could not stop. Its biggest gamble yet was that it could overturn the law and avoid a sale altogether — a bet that failed.
Many social media companies have skyrocketed in popularity only to fade away nearly as fast, and others, like Facebook and X, have faced tough scrutiny in Washington. But none have been effectively forced to erase their presence in the country. Only TikTok will have that distinction.
“The vast majority of people I’ve talked to have said TikTok will figure something out, without a very clear answer to what that something will be, because they always have,” said Joe Marchese, a venture capitalist and former TV network executive. People “can’t picture it not working out.”
TikTok is already appealing directly to President-elect Donald J. Trump, who has vowed to save the app, somehow. Mr. Chew posted a direct appeal to Mr. Trump on TikTok after the Supreme Court decision, thanking him “for his commitment to work with us to find a solution that keeps TikTok available in the United States.” TikTok declined to comment on Project Achilles.
Late Friday, the company said that unless the Biden administration made it clear to service providers that they could continue providing services to the app after the law took effect, “unfortunately TikTok will be forced to go dark on Jan. 19.” But on Saturday, the White House press secretary called TikTok’s statement “a stunt.” And Mr. Trump indicated in an interview with NBC News on Saturday that he would “most likely” give TikTok a 90-day extension once he takes office on Monday.
TikTok users are grieving, often couching their dismay in dark humor. Few seem to believe the app will be blocked on Sunday.
“In 2020 I did an interview about the TikTok ban, and I was saying the same thing: ‘I don’t think it’s going to get banned,’” said Yumna Jawad, a recipe developer and content creator who goes by Feel Good Foodie. “Five years later, I’m still doing the same interview.”
It ‘Can Change Somebody’s Life’
Before it was TikTok, it was Musical.ly, a Chinese lip-syncing app popular with teenagers and tweens.
Musical.ly’s two founders had nearly run out of venture funding for an education app when they decided to pivot to D.I.Y. music videos in 2014. The app let users film over 15-second clips of popular songs, often accompanied by a distinct brand of hand choreography.
As Musical.ly grew, ByteDance took notice. It paid around $1 billion for Musical.ly in 2017 and ultimately folded its technology and users into an app that ByteDance had launched internationally only a few months earlier: TikTok. By 2018, TikTok was roaring into the rankings of the most downloaded apps in the United States.
During the Covid-19 pandemic, TikTok became a mainstay in Americans’ lives. The app, with its endless stream of short-form entertainment, was perfectly positioned for a period when many people had more free time than ever. Or, as the musician Curtis Roach put it in the video that would make him one of the pandemic’s earliest breakout stars, a time when many people were “bored in the house.”
“I joined just to post my little funny videos, and TikTok turned into something that can change somebody’s life,” Mr. Roach said in a recent interview.
TikTok seemingly left no corner of culture untouched.
Emma Straub, an author and owner of the independent Books Are Magic bookstores, recalled seeing backlist titles like Madeline Miller’s “The Song of Achilles” suddenly in high demand after BookTok made them popular again. In the culinary world, TikTok sent feta cheese and, later, cucumbers flying off the shelves as home cooks clamored to recreate viral recipes. Jane Wickline leveraged parody videos into a role on “Saturday Night Live.” TikTok was the most downloaded app in the United States and world in 2020, 2021 and 2022.
Almost overnight, teenagers became household names. By November 2020, Charli D’Amelio had amassed 100 million followers, making her, at that time, the most-followed person on TikTok in the world. She became, at age 16, famous for recording dance videos in her bedroom. By 2021, her family would have a reality show on Hulu.
“It was a vehicle for my kids and us to follow their dreams,” said Marc D’Amelio, Ms. D’Amelio’s father.
Regulatory Reality
As TikTok’s popularity surged, so did scrutiny from the U.S. government. But TikTok managed to evade almost everything officials threw at it.
The first serious effort to ban the app in the United States came in the summer of 2020 from Mr. Trump, during his first term as president. TikTok was already on edge after a ban in India. Then Mr. Trump raised concerns that ByteDance could hand over sensitive TikTok user data to the Chinese government.
“As far as TikTok is concerned, we’re banning them from the United States,” he said in July 2020.
Mr. Trump later hedged, saying he did not mind if Microsoft or another “very, very American” company bought TikTok instead. In August, he issued an executive order that effectively barred app stores from hosting TikTok. It gave companies a 45-day deadline to comply.
TikTok sued to block the executive order. As the deadline approached, the company tried to find a path that would assuage Mr. Trump’s fears by having two American companies take a stake in a new U.S.-based company, TikTok Global, which would go public within a year. But at the 11th hour, the deal appeared to be imperiled by the Chinese government and conflicts over ByteDance’s involvement.
Suddenly the ban seemed imminent — and yet TikTok emerged unscathed.
That fall, two federal courts agreed with TikTok that the executive order was unlawful and stopped the ban from going into effect. Shortly afterward, Mr. Trump lost his bid for re-election, complicating policymakers’ approach to addressing the concerns they had about TikTok and shelving the contentious deal.
TikTok wasn’t out of the woods. The Biden administration had many of the same national security concerns about the app. And some states began acting on their own against it.
By early 2023, more than a dozen states had blocked the app from government-owned devices and networks, joining previous bans by the Army and the Air Force. That April, Montana passed a law to block the app outright in the state to protect its citizens’ data from China. TikTok sued, saying the law was overreaching and violated the First Amendment.
Congress had also started discussing a ban in earnest — conversations that multiplied after lawmakers grilled Mr. Chew, TikTok’s chief executive, in a five-hour hearing in March 2023. TikTok had also been working for years on a proposal to show it could operate independently from China, but that same month, the Biden administration started to seem increasingly skeptical of it in public.
That fall, Republican lawmakers began accusing TikTok of amplifying pro-Palestinian and anti-Israel videos and a decades-old letter by Osama bin Laden through its algorithmic feed.
Yet by the end of 2023, TikTok had escaped defeat again. A huge lobbying campaign that included flying TikTok stars to Washington helped fend off the proposal that Congress had been discussing.
The company’s legal case against the Montana law prevailed, too. That November, a federal court ruled that TikTok wouldn’t have to go dark in that state after all.
By December 2023, more than 150 million people were using TikTok in the United States.
‘Lower the Temperature’
With both the congressional effort and Montana’s ban behind them, some of TikTok’s top leaders seemed to believe the worst of the threats had passed.
Mr. Chew agreed to a rare profile in Vogue Singapore. Michael Beckerman, TikTok’s head of policy for the Americas, and Zenia Mucha, who oversees TikTok’s marketing and communications, were among executives who flew to Singapore, where Mr. Chew was based, and downplayed the near-term risk of a ban to company leaders, two people familiar with the trip said. After all, President Biden had just joined the app around the 2024 Super Bowl.
Ms. Mucha reflected that the company needed to “lower the temperature” and keep TikTok out of the news, according to four employees who heard her use the phrase when dismissing efforts, like Project Achilles, to prepare for a ban.
What ByteDance and TikTok didn’t realize — despite their well-paid policy staff and millions in lobbying expenditures — was that a small bipartisan group of lawmakers was secretly working on drafting a new law designed to withstand every legal challenge that TikTok had raised in the past. It was formally introduced last March.
TikTok was blindsided. It scrambled to respond, flying creators to Washington and sending pop-up messages to users, urging them to call their representatives to oppose the legislation.
But this time, its campaign failed. Congress passed the bill rapidly, with rare bipartisan support, and Mr. Biden signed it into law in April, less than eight weeks after its introduction — leading some aides to nickname it “Thunder Run.” Unlike Mr. Trump’s executive action, the law was upheld in the courts.
A Last Hope
Despite TikTok’s looming ban, it was largely business as usual inside the company.
Two weeks after Mr. Biden signed the TikTok law, Mr. Chew and his wife joined dozens of celebrity guests at the 2024 Met Gala in Manhattan, which TikTok sponsored. The company told advertisers like L’Oreal and Victoria’s Secret that it wasn’t backing down from its U.S. business over drinks in New York and on the French Riviera at the ad industry’s annual confab in Cannes. It said it would sponsor the Washington Capitals hockey team in September.
TikTok executives have, at times, made light of the possible ban, suggesting in one staff meeting over the summer that it would one day be the subject of a Hollywood film.
In October, Mr. Beckerman held a gathering for his team in Lima, Peru, flying dozens of employees there, three people with knowledge of the outing said. The team outings were typically a mix of business and fun — but the jaunt struck some as surprising given the company’s situation. (TikTok said a hurricane had forced it to switch from an original destination of Miami.)
Now, TikTok is pinning its last hope on Mr. Trump.
Mr. Trump, who now has 14.8 million followers on his TikTok account, publicly changed his stance on the app last March. He has vowed to save it, though his options, even as president, are limited. He cannot overturn the law on his own, and it is not clear how he might stop its enforcement. He could try to exercise a one-time 90-day extension for TikTok if he determines sale talks are underway that would meet the terms of the law.
TikTok does not seem to be giving up. The company is spending thousands to be the headline sponsor of an event on Sunday, the day the law is scheduled to go into effect, celebrating the conservative influencers who helped shape the 2024 election. On Monday, Mr. Chew will attend the inauguration, alongside former presidents, family members and other important guests.
TikTok’s stars do not seem to believe this is the final blow, either. Bethenny Frankel, the Bravo star and entrepreneur, said she had a hard time believing that TikTok could be gone on Sunday. TikTok’s users will figure out a way forward, she said.
“They’re club kids, and they’re going to figure out where the after-party is,” Ms. Frankel said. “They’re not letting the club get shut down.”
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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