President Donald Trump has announced a potential resolution to TikTok’s uncertain future in the United States, revealing that a newly established U.S. sovereign wealth fund could be used to acquire the platform. This development follows an executive order he signed on February 3, 2025, creating the country’s first sovereign wealth fund, aimed at monetizing U.S. assets for national investment.
U.S. Sovereign Wealth Fund and Its Role in TikTok’s Future
The newly formed sovereign wealth fund is designed to support major national projects such as infrastructure, manufacturing, and medical research. Treasury Secretary Scott Bessent confirmed that the fund would be operational within the next year, though specific details regarding its funding and governance are still being finalized.
During the executive order signing ceremony, Trump suggested that this fund could play a crucial role in acquiring TikTok, preventing its ban in the U.S. The platform, owned by Chinese tech giant ByteDance, has faced growing scrutiny due to national security concerns. U.S. legislation enacted on January 19, 2025, mandates that ByteDance divest its U.S. operations or risk a complete ban.
The 75-Day Extension and Potential Buyers
To allow time for a potential resolution, Trump issued an executive order delaying the enforcement of the TikTok ban by 75 days. This extension provides an opportunity for new ownership discussions to take place. The President has indicated that a final decision on TikTok’s future is expected by the end of February.
Several major U.S. companies have reportedly expressed interest in acquiring TikTok to ensure its continued operation. Among them, Microsoft is actively exploring a deal. Meanwhile, reports suggest that Apple has removed TikTok from its App Store in compliance with U.S. regulations, leading to a surge in demand for iPhones pre-installed with the app.
National Security Concerns and Public Reaction
The U.S. government’s primary concern surrounding TikTok is its Chinese ownership, as ByteDance is subject to China’s data-sharing regulations. Critics argue that this could pose a significant risk to American users’ data and national security. TikTok, however, has continuously denied any wrongdoing and insists that its data policies align with industry standards.
The possibility of a U.S. government-backed acquisition represents an unprecedented approach to resolving the controversy. If the sovereign wealth fund were to purchase TikTok, it would mark a significant shift in how national security concerns intersect with global technology investments.
With the 75-day deadline looming, all eyes are on the negotiations that will determine whether TikTok will remain accessible to millions of American users. A resolution is expected within the coming weeks, as the administration explores pathways to address security concerns while maintaining the app’s presence in the U.S. market.
By Andrej Kovacevic
Updated on 3rd February 2025