I struggle to get too worked up about this, and Fat Matt's contention about Chinese controlling all the code without oversight, seems ill-substantiated by the details he shared.
ChatGPT's description of the current state of things:
Here’s a breakdown of the recent deal around TikTok, what led to it, and why it’s happening:
What the deal is (as of mid‐September 2025)
The U.S. and China have reached a framework agreement that would allow TikTok to continue operating in the U.S. under new ownership arrangements. (Reuters)
Under the proposed structure, U.S. investors (including a consortium led by Oracle, Silver Lake, and Andreessen Horowitz) would hold about 80% of TikTok’s U.S. operations. ByteDance (TikTok’s Chinese parent) would retain a minority stake (around 19.9%). (Reuters)
All U.S. user data would be hosted on U.S. servers (reportedly via Oracle in Texas) under this plan. (Reuters)
There’s a contentious issue about the algorithm: China has signaled the U.S. version of the app might still use ByteDance’s algorithm under a licensing agreement. That raises questions about how much control or influence ByteDance/China might retain. (Financial Times)
The deadline for this restructuring/divestment has been extended (via executive order) to December 16, 2025 so that there’s time to hammer out the details. (AP News)
Why it happened
Several interrelated pressures and triggers led to this deal:
National security concerns
The U.S. government has for years expressed worry that ByteDance (which is based in China) could be compelled under Chinese law to share data with the Chinese government or otherwise that the Chinese government might influence the content or algorithm of TikTok. (PBS)
Legislation: PAFACA
Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) in April 2024. It requires TikTok to be sold or divested from Chinese control (or be banned) because it’s considered a “foreign adversary controlled application.” (Wikipedia)
TikTok and ByteDance challenged its constitutionality; the Supreme Court ultimately upheld the law. That meant the legal pressure was real. (Wikipedia)
Deadlines looming for enforcement / ban
The law set a deadline (initially January 19, 2025) by which ByteDance needed to comply (i.e., divest) or face the app being banned. (PBS)
Trump’s administration has repeatedly delayed enforcement via executive orders, while negotiations continued to try to get a deal in place. (PBS)
Domestic political and electoral considerations
TikTok is extremely popular in the U.S., especially among younger people. A ban would have substantial backlash. Trump has publicly credited TikTok with helping in his reelection, and losing access to it would be politically costly. (AP News)
Global/geopolitical tensions with China
TikTok has become part of the broader U.S.-China relationship involving tech, data, influence operations, trade, and national security. Negotiating a sale or restructuring is part of managing those tensions. (PBS)
Key uncertainties and criticisms
Whether licensing the algorithm from ByteDance still gives China too much control or influence. Some lawmakers are skeptical that this deal satisfies the law’s intent. (Reuters)
Whether the structure will fully disconnect ByteDance from decision‐making, especially on content moderation, data security, or how the U.S. app works. (The Guardian)
Whether the transitions (data hosting, infrastructure, algorithm) will happen cleanly, or whether there will be loopholes.
If you like, I can pull up the latest version of the deal (since things are still under negotiation) so you have the most up‐to‐date details.
Reuters
Reuters
Reuters
