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TikTok Music has launched on Wednesday in Australia, Singapore and Mexico to a small group of users.

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When Joe Biden joined TikTok on the eve of the Super Bowl last month, political scientist Maggie Macdonald was struck by what she called the “meta” nature of the president’s first post.

In the video, Biden poked fun at a conspiracy theory that he rigged the Super Bowl — in favor of the Kansas City Chiefs — to somehow help his reelection efforts.

“Yeah, I’m old, but I’m on TikTok, and I’m on this super online place talking about this super online concept,” Macdonald, an assistant political science professor at the University of Kentucky, said of the messaging and tone of Biden’s video.

While Biden’s debut on the wildly popular social media app came in a playful manner, his use of TikTok in this year’s reelection campaign is at the heart of a heated debate in Washington, D.C., about whether the service should even exist in the U.S. The app, owned by China’s ByteDance, is viewed as both an invaluable tool in trying to reach masses of young potential voters who are unplugged from mainstream media and an easy way, allegedly, for the Chinese government to spy on American consumers.

Members of the House Select Committee on the Chinese Communist Party introduced a bill this week that would require ByteDance to divest TikTok or face a U.S. ban, following earlier federal and state-led efforts that never came to fruition. On Thursday, the committee voted 50-0 to send the bill to the House floor.  

Shortly after the committee advanced the bill, Rep. Troy Balderson, R-Ohio, called TikTok “a surveillance tool used by the Chinese Communist Party to spy on Americans and harvest highly personal data.”

TikTok CEO Shou Zi Chew has denied in Senate hearings any ties between the app and the CCP. In a statement to CNBC on Thursday, TikTok said, “The government is attempting to strip 170 million Americans of their Constitutional right to free expression,” an act that “will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country.”

TikTok’s CEO Shou Zi Chew testifies during the Senate Judiciary Committee hearing on online child sexual exploitation, at the U.S. Capitol, in Washington, U.S., January 31, 2024. 

Nathan Howard | Reuters

Since Biden’s playful intro post, his campaign’s TikTok account has notched over 222,000 followers and over 2.4 million likes. With eight months until the general election and a likely rematch of the 2020 contest, Biden narrowly trails Republican challenger Donald Trump in most national polls in what’s expected to be a tight battle to the end.

Biden’s age has shown up as a persistent concern in polling data, so experts say reaching out to younger audiences is key in trying to win over undecided young voters, and mobilize a traditional Democratic constituency whose members sometimes stay home on Election Day.

“It’s really important for him to have a presence, and for him to interact directly with voters, not just through creators and influencers,” said Aaron Earls, CEO of social media influencer firm Activate HQ, which specializes in political campaigns. “The turnout in 2020 was really significant with that younger audience and, everyone’s suggesting that maybe there will be a similar turnout with the younger audience again.”

During the State of the Union address Thursday evening, Biden’s campaign posted clips of the speech on TikTok, a sign that the president plans to stick with the app despite swirling concerns in Washington. But it’s a particularly convoluted matter for Biden because, should the bill pass the full House and the Senate, it would hit the president’s desk.

White House press secretary Karine Jean-Pierre told reporters on Thursday that, “This bill is important, we welcome this step.” She said the administration plans to “meet the American people where they are,” adding that, “It doesn’t mean that we’re not going to try to figure out how to protect our national security.”

Biden said on Friday that he will sign the bill if Congress passes it.

The Biden campaign didn’t immediately respond to a request for comment.

TikTok is trying to generate support from users following the House’s action on Thursday. On the app, users were greeted with a screenshot warning them that Congress was “planning a total ban of TikTok.” Multiple staffers and lawmakers told CNBC their offices were flooded with calls, mostly from kids.

TikTok goes to Washington

U.S. political campaigns more broadly are trying to figure out how best to utilize TikTok.

In recent cycles, Facebook has been the social media app of choice for campaigns because of its ability to narrowly target users with fundraising ads and informational posts. However, Apple’s 2021 iOS privacy update made it much harder to target audiences, raising the cost of ad campaigns across Meta’s platforms.

Additionally, Facebook has skewed older over the years, with younger groups gravitating to TikTok. The challenge for campaigns is that TikTok says it doesn’t allow for political ads or “content such as a video from a politician asking for donations, or a political party directing people to a donation page on their website.”

To date, major campaigns have relied on high-profile TikTok influencers to help rally support for specific issues. Last April, for instance, the White House said it was enlisting a squad of volunteer TikTok and Instagram influencers to help spread awareness of the Biden campaign.

Earls says it’s a strategy that’s long been employed in politics. TikTok just presents a new medium.

“That has historically been a tactic that’s happened since the Kennedy days, but just more in traditional media,” Earls said. “Like you’re going to get an endorsement from Marilyn Monroe or Joe DiMaggio or whatever.”

Political groups are scouring TikTok for influencers with positions that resonate with would-be voters, and are targeting certain swing states that could be critical in deciding an election. During the 2022 midterm elections, the Democratic National Committee and communications groups like Climate Power enlisted the help of TikTok and influencers to discuss issues like abortion rights and to mobilize voters.

Biden campaign joins TikTok

Even with its growing popularity, TikTok remains a niche tool in politics.

Anupam Chander, a Georgetown University Law Center professor, released a study with some colleagues last year showing that fewer than 10% of members of the U.S. Congress have a “TikTok account from which they post content,” most likely because of the app’s connection to China. In total, the report said, 34 House members and seven senators had an official TikTok account.

Among major politicians using TikTok, an overwhelming majority are Democrats, the study showed. Some of Republicans’ resistance could tie back to Trump’s vow — which was ultimately unsuccessful — to ban TikTok during his administration.

Reaching ‘young Americans where they are’

One of the few high-profile Republicans now on the app is former presidential candidate Vivek Ramaswamy, who said during a primary debate that “part of how we win elections is reaching the next generation of young Americans where they are.”

As to whether Trump will use TikTok in his campaign, Earls said he wouldn’t be surprised to see it. The decision, he said, likely has less to do with China and is more about Trump’s connection to his own social media platform, Truth Social, where he posts with frequency.

“We’ve seen him do whatever it takes to win an election including trying to stop the peaceful transition of power,” Earls said. “He will do what he thinks will help him win so I suspect we’ll see his campaign join TikTok in the coming months depending upon how things develop with his ability to monetize Truth Social.”

The Trump campaign didn’t immediately respond to a request for comment.

Anish Mohanty, communications director for Gen-Z for Change, said his nonprofit advocacy group was originally called TikTok for Biden when it formed in 2020 as part of an effort “to defeat Donald Trump.” The group changed its name the following year, and now taps its network of hundreds of TikTok social media influencers to advocate for multiple progressive issues related to climate change, universal health care and for Biden to call for an immediate ceasefire in Gaza.

Given the many challenges Biden faces with younger groups, his mere presence on TikTok isn’t enough to win votes, Mohanty said, particularly if the president’s campaign is “just using it to post cringy memes about Trump.”

“Young people care about issues, that’s why young people are so unhappy with Biden over action on climate change, over the situation in Gaza,” Mohanty said. “Just because Biden is posting on TikTok, that’s not what’s going to pull young people over.”

Still, Macdonald sees a big opportunity for Biden.

“If you want to reach younger people who are very apathetic, they’re on TikTok,” said the University of Kentucky professor. “You have an incentive to reach them on TikTok, and it does seem that the Republican Party as a unit is just not doing it.”

WATCH: Denying a platform isn’t denying free speech.

Denying a platform isn't denying free speech: Fmr. Senator Heidi Heitkamp on possible TikTok ban

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These Chinese apps have surged in popularity in the U.S. A TikTok ban could ensnare them

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These Chinese apps have surged in popularity in the U.S. A TikTok ban could ensnare them

Lemon8, a photo-sharing app by Bytedance, and RedNote, a Shanghai-based content-sharing platform, have seen a surge in popularity in the U.S. as “TikTok refugees” migrate to alternative platforms ahead of a potential ban. 

Now a law that could see TikTok shut down in the U.S. threatens to ensnare these Chinese social media apps, and others gaining traction as TikTok-alternatives, legal experts say. 

As of Wednesday, RedNote — known as Xiaohongshu in Chinawas the top free app on the U.S. iOS store, with Lemon8 taking the second spot. 

The U.S. Supreme Court is set to rule on the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, that would lead to the TikTok app being banned in the U.S. if its Beijing-based owner, ByteDance, doesn’t divest it by Jan. 19.

While the legislation explicitly names TikTok and ByteDance, experts say its scope is broad and could open the door for Washington to target additional Chinese apps. 

“Chinese social media apps, including Lemon8 and RedNote, could also end up being banned under this law,” Tobin Marcus, head of U.S. policy and politics at New York-based research firm Wolfe Research, told CNBC. 

If the TikTok ban is upheld, it will be unlikely that the law will allow potential replacements to originate from China without some form of divestiture, experts told CNBC.

PAFACA automatically applies to Lemon8 as it’s a subsidiary of ByteDance, while RedNote could fall under the law if its monthly average user base in the U.S. continues to grow, said Marcus. 

The legislation prohibits distributing, maintaining, or providing internet hosting services to any “foreign adversary controlled application.” 

These applications include those connected to ByteDance or TikTok or a social media company that is controlled by a “foreign adversary” and has been determined to present a significant threat to national security.

The wording of the legislation is “quite expansive” and would give incoming president Donald Trump room to decide which entities constitute a significant threat to national security, said Carl Tobias, Williams Chair in Law at the University of Richmond. 

Xiaomeng Lu, Director of Geo‑technology at political risk consultancy Eurasia Group, told CNBC that the law will likely prevail, even if its implementation and enforcement are delayed. Regardless, she expects Chinese apps in the U.S. will continue to be the subject of increased regulatory action moving forward.

“The TikTok case has set a new precedent for Chinese apps to get targeted and potentially shut down,” Lu said.

She added that other Chinese apps that could be impacted by increased scrutiny this year include popular Chinese e-commerce platform Temu and Shein. U.S. officials have accused the apps of posing data risks, allegations similar to those levied against TikTok.

The fate of TikTok rests with Supreme Court after the platform and its parent company filed a suit against the U.S. government, saying that invoking PAFACA violated constitutional protections of free speech.

TikTok’s argument is that the law is unconstitutional as applied to them specifically, not that it is unconstitutional per se, said Cornell Law Professor Gautam Hans. “So, regardless of whether TikTok wins or loses, the law could still potentially be applied to other companies,” he said. 

The law’s defined purview is broad enough that it could be applied to a variety of Chinese apps deemed to be a national security threat, beyond traditional social media apps in the mold of TikTok, Hans said. 

Trump, meanwhile, has urged the U.S. Supreme Court to hold off on implementing PAFACA so he can pursue a “political resolution” after taking office. Democratic lawmakers have also urged Congress and President Joe Biden to extend the Jan. 19 deadline

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Nvidia-backed AI video platform Synthesia doubles valuation to $2.1 billion

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Nvidia-backed AI video platform Synthesia doubles valuation to .1 billion

Synthesia is a platform that lets users create AI-generated clips with human avatars that can speak in multiple languages.

Synthesia

LONDON — Synthesia, a video platform that uses artificial intelligence to generate clips featuring multilingual human avatars, has raised $180 million in an investment round valuing the startup at $2.1 billion.

That’s more than than double the $1 billion Synthesia was worth in its last financing in 2023.

The London-based startup said Wednesday that the funding round was led by venture firm NEA with participation from Atlassian Ventures, World Innovation Lab and PSP Growth.

NEA counts Uber and TikTok parent company ByteDance among its portfolio companies. Synthesia is also backed by chip giant Nvidia.

Victor Riparbelli, CEO of Synthesia, told CNBC that investors appraised the businesses differently from other companies in the space due to its focus on “utility.”

“Of course, the hype cycle is beneficial to us,” Riparbelli said in an interview. “For us, what’s important is building an actually good business.”

Synthesia isn’t “dependent” on venture capital — as opposed to companies like OpenAI, Anthropic and Mistral, Riparbelli added.

These startups have raised billions of dollars at eye-watering valuations while burning through sizable amounts of money to train and develop their foundational AI models.

Read more CNBC reporting on AI

Synthesia’s not the only startup shaking up the world of video production with AI. Other startups offer solutions for producing and editing video content with AI, like Veed.io and Runway.

Meanwhile, the likes of OpenAI and Adobe have also developed generative AI tools for video creation.

Eric Liaw, a London-based partner at VC firm IVP, told CNBC that companies at the application layer of AI haven’t garnered as much investor hype as firms in the infrastructure layer.

“The amount of money that the application layer companies need to raise isn’t as large — and therefore the valuations aren’t necessarily as eye popping” as companies like Nvidia,” Liaw told CNBC last month.

Riparbelli said that money raised from the latest financing round would be used to invest in “more of the same,” furthering product development and investing more into security and compliance.

Last year, Synthesia made a series of updates to its platform, including the ability to produce AI avatars using a laptop webcam or phone, full-body avatars with arms and hands and a screen recording tool that has an AI avatar guide users through what they’re viewing.

On the AI safety front, in October Synthesia conducted a public red team test for risks around online harms, which demonstrated how the firm’s compliance controls counter attempts to create non-consensual deepfakes of people or use its avatars to encourage suicide, adult content or gambling.

The National Institute of Standards and Technology test was led by Rumman Chowdhury, a renowned data scientist who was formerly head of AI ethics at Twitter — before it became known as X under Elon Musk.

Riparbelli said that Synthesia is seeing increased interest from large enterprise customers, particularly in the U.S., thanks to its focus on security and compliance.

More than half of Synthesia’s annual revenue now comes from customers in the U.S., while Europe accounts for almost half.

Synthesia has also been ramping up hiring. The company recently tapped former Amazon executive Peter Hill as its chief technology officer. The company now employs over 400 people globally.

Synthesia’s announcement follows the unveiling of Prime Minister Keir Starmer’s 50-point plan to make the U.K. a global leader in AI.

U.K. Technology Minister Peter Kyle said the investment “showcases the confidence investors have in British tech” and “highlights the global leadership of U.K.-based companies in pioneering generative AI innovations.”

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SEC sues Elon Musk, alleging failure to properly disclose Twitter ownership

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SEC sues Elon Musk, alleging failure to properly disclose Twitter ownership

Beata Zawrzel | Nurphoto | Getty Images

The SEC filed a lawsuit against Elon Musk on Tuesday, alleging the billionaire committed securities fraud in 2022 by failing to disclose his ownership in Twitter and buying shares at “artificially low prices.”

Musk, who is also CEO of Tesla and SpaceX, purchased Twitter for $44 billion, later changing the name of the social network to X. Prior to the acquisition he’d built up a position in the company of greater than 5%, which would’ve required disclosing his holding to the public.

According to the SEC complaint, filed in U.S. District Court in Washington, D.C., Musk withheld that material information, “allowing him to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due.”

The SEC had been investigating whether Musk, or anyone else working with him, committed securities fraud in 2022 as the Tesla CEO sold shares in his car company and shored up his stake in Twitter ahead of his leveraged buyout. Musk said in a post on X last month that the SEC issued a “settlement demand,” pressuring him to agree to a deal including a fine within 48 hours or “face charges on numerous counts” regarding the purchase of shares.

Musk’s lawyer, Alex Spiro, said in an emailed statement that the action is an admission by the SEC that “they cannot bring an actual case.” He added that Musk “has done nothing wrong” and called the suit a “sham” and the result of a “multi-year campaign of harassment,” culminating in a “single-count ticky tak complaint.”

Musk is just a week away from having a potentially influential role in government, as President-elect Donald Trump’s second term begins on Jan. 20. Musk, who was a major financial backer of Trump in the latter stages of the campaign, is poised to lead an advisory group that will focus in part on reducing regulations, including those that affect Musk’s various companies.

In July, Trump vowed to fire SEC chairman Gary Gensler. After Trump’s election victory, Gensler announced that he would be resigning from his post instead.

In a separate civil lawsuit concerning the Twitter deal, the Oklahoma Firefighters Pension and Retirement System sued Musk, accusing him of deliberately concealing his progressive investments in the social network and intent to buy the company. The pension fund’s attorneys argued that Musk, by failing to clearly disclose his investments, had influenced other shareholders’ decisions and put them at a disadvantage.

The SEC said that Musk crossed the 5% ownership threshold in March 2022 and would have been required to disclose his holdings by March 24.

“On April 4, 2022, eleven days after a report was due, Musk finally publicly disclosed his beneficial ownership in a report with the SEC, disclosing that he had acquired over nine percent of Twitter’s outstanding stock,” the complaint says. “That day, Twitter’s stock price increased more than 27% over its previous day’s closing price.”

The SEC alleges that Musk spent over $500 million purchasing more Twitter shares during the time between the required disclosure and the day of his actual filing. That enabled him to buy stock from the “unsuspecting public at artificially low prices,” the complaint says. He “underpaid” Twitter shareholders by over $150 million during that period, according to the SEC.

In the complaint, the SEC is seeking a jury trial and asks that Musk be forced to “pay disgorgement of his unjust enrichment” as well as a civil penalty.

This story is developing.

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