TikTok's AI is reportedly being sold to companies that are interested in its algorithm. Its parent company, ByteDance, launched a new division called BytePlus, and its sole purpose is to sell TikTok's technology to third parties.
TikTok's AI Sale
According to The Financial Times, BytePlus sells TikTok's recommendation algorithm, computer vision tech, real-time effects, and even its automated transitions, among other features.
BytePlus was first introduced in June, and it is headquartered in Singapore, although it also has branches in London and Hong Kong.
The company is currently looking to register trademarks in the United States, but it is not certain if the firm has an American presence yet as it is fairly new.
Also Read: 'Mobile Legends' Developer Now Under TikTok Owner; ByteDance Wants to Compete With Tencent
ByteDance stated that it already has a few customers for TikTok's AI. Goat, a US-based fashion app, already uses BytePlus code, as are the travel site WeGo and the Indonesia-based online shopping company Chilibeli.
However, ByteDance refused to elaborate on its plans for BytePlus, according to The Verge.
A move like this is not surprising as it serves as a hedge. As many people use TikTok, there is a time that it is will hit the plateau, and it will not be able to enjoy the same fame and influence that the app has now.
ByteDance could help keep the money flowing by selling their technology.
Selling of TikTok's US Businesses
This is not the first time that ByteDance was forced to sell. In 2020, ByteDance was given a week to sell off TikTok's US business and prevent an overall ban.
The Committee on Foreign Investment or CFIUS has told ByteDance, TikTok's parent company, that it only had until the end of 2020 to secure a deal. The extension came after the original deadline of mid-202.
A spokesperson for the CFIUS told CNBC that the committee granted the extension to allow them more time to review and revise the submitted that it had received from ByteDance.
Last year, President Donald Trump told ByteDance that it must find a suitable buyer for TikTok's US business in 90 days or face being blocked from operating in the country.
President Donald Trump signed a CFIUS directive at the time, saying that the famous app presented a national security risk. TikTok has denied that it poses any national security risk.
The directive signed by President Trump clearly states that ByteDance must sell its assets and properties, whether it be tangible or intangible.
All assets and properties that are used to support ByteDance's operation of the TikTok app in the United States must be sold to interested parties.
Numerous companies fought to get the rights to the US businesses of ByteDance, from Facebook to Microsoft, but in the end, Oracle Corporation and Walmart won.
President Donald Trump approved the deal in which Oracle Corporation and Walmart partner up with TikTok in the United States, allowing the app to avoid a complete shutdown.
After President Trump's comments, Oracle Corporation announced that it is now a minority investor with a 12.5% stake.
TikTok then confirmed Oracle's role and stated that it is now working with Walmart on a commercial partnership.
Meanwhile, Walmart got a 7.5% stake, and Walmart's CEO Dough McMillon would serve as one of the five board members of the new company.
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This article is owned by Tech Times
Written by Sophie Webster
