TikTok restores US service as Trump pushes for partial US ownership

Could AI-powered search engine Perplexity fully save TikTok in the United States?

After going dark, TikTok began restoring its services in the US on Sunday, following remarks by President-elect Donald Trump at a rally where he pledged to bring the platform back online. The app, used by 170 million Americans, had gone offline after a law banning its operation in the US took effect over national security concerns.

“Frankly, we have no choice. We have to save it,” Trump said at the event, signaling a potential agreement to restore TikTok’s access through a joint venture with 50% US ownership. Hours earlier, TikTok notified users, stating: “As a result of President Trump’s efforts, TikTok is back in the US.”

The platform thanked Trump for “providing the necessary clarity and assurance” to service providers supporting TikTok’s operations. The statement also emphasized the app’s importance for small businesses, noting that over 7 million rely on it for growth.

Despite this, TikTok’s app remained unavailable for download in US app stores as of Sunday evening, and services were limited. The company said it is working with its providers to fully restore functionality.

As TikTok’s fate hung in the balance, alternative arrangements came forward – and could pave the way towards securing itself permanently in the US. Reports suggest interest from Elon Musk, former Los Angeles Dodgers owner Frank McCourt, and AI startup Perplexity AI, which reportedly submitted a proposal to merge with TikTok’s US operations.

The revival of TikTok comes as US-China relations remain strained. Chinese officials criticized the ban, calling it an abuse of state power, while Trump indicated he would pursue negotiations with China to address broader trade and security issues.

TikTok’s return represents a reversal for Trump, who in 2020 sought to ban the app over fears that parent company ByteDance could misuse Americans’ data. This time, Trump has proposed a structure that would allow for significant US ownership and control.

Not all US officials are on board. Republican senators Tom Cotton and Pete Ricketts issued a joint statement opposing any extensions or deals that fall short of severing TikTok’s ties to its Chinese owners.

As TikTok’s fate hangs in the balance, marketing firms and small businesses are scrambling to adapt, with some describing the uncertainty as a “hair on fire” moment. For now, the spotlight remains on Trump’s proposed deal and whether it can secure a future for TikTok in the US while addressing national security concerns.

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