Due to the restriction on exporting AI technology from China to a foreign company, ByteDance needs to obtain a license before negotiating with US TikTok.
The issue is getting complicated in relation to sales negotiations for US operations for TikTok because of the key question of whether the application’s core algorithms can be included as part of a business. This is according to a report by the Wall Street Journal, where unidentified people are cited with the subject.
The TikTok videos that users watch are decided by these algorithms without the need for other users to be followed by them or their preferences to be specified. Until Friday, the algorithms were considered part of the business negotiations, which is disclosed in the Journal.
When restrictions on the export of artificial intelligence were introduced by the Chinese government, where content recommendation algorithms are covered, such as the one that drives TikTok. US president effort was followed by action to force the sale of TikTok’s U.S. operations through September 20.
This export restriction means that a license would have to be obtained by ByteDance, to export any restricted technologies from China to a foreign company. The question is whether approval by the Chinese government for the transfer AI algorithms would be necessary and, if so, whether the Chinese government signs off.
According to the Journal report that this was being discovered by both potential buyers and the seller, ByteDance. A Microsoft with Walmart team and Oracle are being included by potential buyers of TikTok assets in the USA.
For Tuesday’s comment was declined by Microsoft, Oracle, and Walmart, the response to a request was not given by TikTok representatives.