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Steve Mnuchin is angling to partner with an AI firm that can quickly rebuild TikToks algorithm as he looks to orchestrate a blockbuster bid to acquire the China-owned app, The Post has learned.

The former Treasury secretary first revealed last month that he was exploring a bid to buy TikTok after House lawmakers voted to pass a bill requiring its Beijing-based parent ByteDance to divest within six months or face a total US ban.

Now, insiders say Mnuchin is pitching a plan to rebuild TikToks algorithm in the US as the only likely way to satisfy Congressional concerns that the app poses a national security risk, as well as Chinas strict export laws that could block a sale.

The Senate is expected to hold hearings on the House bill later this year, although no vote has yet been scheduled.

Mnuchin believes that any effort to rebuild TikToks sophisticated algorithm would require a partner with access to advanced AI capabilities and expertise, the sources said. Given the size and complexity of the undertaking, the ex-Trump Cabinet member could partner with more than one tech firm, the sources added.

A spokesperson for Mnuchin declined to comment. TikTok did not return a request for comment.

Mnuchin has already said publicly that TikTok would need to be rebuilt in the US after an acquisition, arguing on CNBC that China will be fine selling it so long as theres not a technology transfer along the way.

Multiple experts told The Post that Oracle — the software giant headed by billionaire Trump donor Larry Ellison — is a logical candidate to join his bid. TikTok has already committed to storing the data of US users in servers operated by Oracle as part of “Project Texas,” a plan to satisfy national security and user privacy concerns.

Oracle did not return a request for comment.

When Mnuchin was Treasury secretary, Oracle nearly bought TikTok as part of the Trump administrations effort to force ByteDance to divest. Experts note that an Oracle deal wouldn’t likely to draw as much regulatory scrutiny as a deal with Big Tech firms like Google, Meta and Apple.

Oracle would make sense, given how involved theyve been in the history of this saga, according to Tobin Marcus, a former economic adviser to then-Vice President Biden during the Obama administration.

Microsoft, which is the chief investor in OpenAI, is another logical candidate. The Big Tech giant also came close to buying TikTok in 2020, with CEO Satya Nadella later remarking the aborted bid was the “strangest thing I’ve ever worked on.

Last month, the Washington Post reported that Mnuchin has told potential partners that he was in touch with Oracle as well as former Activision-Blizzard chief Bobby Kotick, who is also reportedly interested in buying the app.

A Kotick representative did not return a request for comment.

The app, which has more than 170 million American users, is sure to carry a hefty price tag. Bloomberg Intelligence estimated that its US business could be worth up to $40 billion, while others have put the price at $100 billion or beyond.  

While some critics have blasted Mnuchin’s plan as far-fetched, rebuilding the algorithm is really the only option given Chinas strict export controls on AI, according to Andrew Grotto, the former senior director for cybersecurity policy under Presidents Barack Obama and Donald Trump.

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I dont think its easy, but I also think given the right level of resource expenditure, the skys the limit in some sense, Grotto said. Whether the product is any good or not at least as good as the original underlying algorithm of TikTok, thats a different question. It seems like a minimally viable product is achievable.

Rob Atkinson, president of the Information Technology and Innovation Foundation think tank and a member of TikToks content and safety advisory council, agreed.

I dont know if its an irreplaceable algorithm, Atkinson said. It seems like with all the AI capabilities today, you could get a really good algorithm that would be maybe not 100% as good, but pretty good and over time would probably evolve to where it is today, if not better. So I dont think that would be the issue.

Rebuilding the app would be just one challenge for Mnuchins bid, which would need to secure approval from both the US and Chinese governments.

The road to the Senate floor is likely to be bumpy, according to Marcus, who views a vote as unlikely before the election. Calls for a ban swelled in March 2023 after TikTok CEO Shou Chews disastrous testimony on Capitol Hill, only to fizzle for more than a year, he noted.

The Senate certainly does not seem eager to just pick up the House bill and ram it through as-is, so theres definitely a possibility to make changes, Marcus said.

On the other side of the Pacific, critics say its a long shot for Mnuchin or any other potential buyer to secure the necessary approval from the Chinese government, which has repeatedly vowed to block any forced sale of TikTok.

One tech executive told The Post last month that a Beijing would see it as a huge besmirchment of their honor and integrity as a sovereign nation if the US government got its way.

Still, the Chinese government might find it difficult to turn down a huge market-value deal for TikToks US operations especially as its President Xi Jinping works overtime to reassure Western business leaders that the country is open for business.

I think theres a path for them signing off on it. I dont think Congress is bluffing, Atkinson said. You would diminish the value of a leading Chinese technology company by a significant amount. I think the Chinese government realizes they would be much better off if ByteDance can get a giant infusion of cash and use it to expand and do other things.

Critics also warn that delaying the sale-or-ban timeline for TikTok ensures that the Chinese Communist Party could use the app to meddle in the presidential election — one of the key reasons that lawmakers have pursued the legislation in the first place.

“The longer it remains under Beijings influence, the more control [Chinese President Xi Jinping] has over the news and information Americans under thirty-five consume and digest,” said Chris Fenton, a trustee at the US-Asia Institute. “Supporting a fair market sale to an American buyer as quickly as possible rewards investors, satisfies users, and protects national security interests.”

As The Post has reported, Senate Majority Leader Chuck Schumer (D-NY) is under pressure to hold a vote on the bill, which has drawn bipartisan support even as some lawmakers raise concerns that muzzling TikTok could violate the First Amendment or set a bad precedent on the targeting of specific companies via government legislation.

Senate lawmakers are reportedly debating potential changes to the bill including extending the six-month window or broadening its scope to target social media. Sen. Maria Cantwell (D-Wash.), who chairs the Senate Commerce Committee, reportedly wants to hold at least one public hearing before any potential vote.

Indeed, the House bills tight six-month divestment window is viewed as a major obstacle to the plan with 12 to 18 months seen as a more realistic timeline to close a deal that includes rebuilding a working version of the software, the sources added.

Prospective buyers are likely to seek an agreement that would allow TikTok to remain operational using its current software until the new algorithm is ready to be implemented even if that means exceeding the stipulated divestment window.

Cantwell has signaled she is in favr of an extended deadline, telling reporters it “would be a good component to guarantee success.”

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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

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At least 13 people may have taken their own lives linked to Post Office scandal, public inquiry finds

At least 13 people may have taken their own lives after being accused of wrongdoing based on evidence from the Horizon IT system that the Post Office and developers Fujitsu knew could be false, the public inquiry has found.

A further 59 people told the inquiry they considered ending their lives, 10 of whom tried on at least one occasion, while other postmasters and family members recount suffering from alcoholism and mental health disorders including anorexia and depression, family breakup, divorce, bankruptcy and personal abuse.

Follow latest on public inquiry into Post Office scandal

Writing in the first volume of the Post Office Horizon IT Inquiry report, chairman Sir Wyn Williams concludes that this enormous personal toll came despite senior employees at the Post Office knowing the Horizon IT system could produce accounts “which were illusory rather than real” even before it was rolled out to branches.

Sir Wyn said: “I am satisfied from the evidence that I have heard that a number of senior, and not so senior, employees of the Post Office knew or, at the very least, should have known that Legacy Horizon was capable of error… Yet, for all practical purposes, throughout the lifetime of Legacy Horizon, the Post Office maintained the fiction that its data was always accurate.”

Referring to the updated version of Horizon, known as Horizon Online, which also had “bugs errors and defects” that could create illusory accounts, he said: “I am satisfied that a number of employees of Fujitsu and the Post Office knew that this was so.”

The first volume of the report focuses on what Sir Wyn calls the “disastrous” impact of false accusations made against at least 1,000 postmasters, and the various redress schemes the Post Office and government has established since miscarriages of justice were identified and proven.

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‘It stole a lot from me’

Recommendations regarding the conduct of senior management of the Post Office, Fujitsu and ministers will come in a subsequent report, but Sir Wyn is clear that unjust and flawed prosecutions were knowingly pursued.

“All of these people are properly to be regarded as victims of wholly unacceptable behaviour perpetrated by a number of individuals employed by and/or associated with the Post Office and Fujitsu from time to time and by the Post Office and Fujitsu as institutions,” he says.

What are the inquiry’s recommendations?

Calling for urgent action from government and the Post Office to ensure “full and fair compensation”, he makes 19 recommendations including:

• Government and the Post Office to agree a definition of “full and fair” compensation to be used when agreeing payouts
• Ending “unnecessarily adversarial attitude” to initial offers that have depressed the value of payouts, ⁠and ensuring consistency across all four compensation schemes
• The creation of a standing body to administer financial redress to people wronged by public bodies
• Compensation to be extended to close family members of those affected who have suffered “serious negative consequences”
• The Post Office, Fujitsu and government agreeing a programme for “restorative justice”, a process that brings together those that have suffered harm with those that have caused it

Regarding the human impact of the Post Office’s pursuit of postmasters, including its use of unique powers of prosecution, Sir Wyn writes: “I do not think it is easy to exaggerate the trauma which persons are likely to suffer when they are the subject of criminal investigation, prosecution, conviction and sentence.”

He says that even the process of being interviewed under caution by Post Office investigators “will have been troubling at best and harrowing at worst”.

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Post Office inquiry lays bare heart-breaking legacy – analysis

‘Hostile and abusive behaviour’

The report finds that those wrongfully convicted were “subject to hostile and abusive behaviour” in their local communities, felt shame and embarrassment, with some feeling forced to move.

Detailing the impact on close family members of those prosecuted, Sir Wyn writes: “Wives, husbands, children and parents endured very significant suffering in the form of distress, worry and disruption to home life, in employment and education.

“In a number of cases, relationships with spouses broke down and ended in divorce or separation.

“In the most egregious cases, family members themselves suffered psychiatric illnesses or psychological problems and very significant financial losses… their suffering has been acute.”

The report includes 17 case studies of those affected by the scandal including some who have never spoken publicly before. They include Millie Castleton, daughter of Lee Castleton, one of the first postmasters prosecuted.

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Three things you need to know about Post Office report

She told the inquiry how her family being “branded thieves and liars” affected her mental health, and contributed to a diagnosis of anorexia that forced her to drop out of university.

Her account concludes: “Even now as I go into my career, I still find it so incredibly hard to trust anyone, even subconsciously. I sabotage myself by not asking for help with anything.

“I’m trying hard to break this cycle but I’m 26 and am very conscious that I may never be able to fully commit to natural trust. But my family is still fighting. I’m still fighting, as are many hundreds involved in the Post Office trial.”

Business Secretary Jonathan Reynolds said the inquiry’s report “marks an important milestone for sub-postmasters and their families”.

He added that he was “committed to ensuring wronged sub-postmasters are given full, fair, and prompt redress”.

“The recommendations contained in Sir Wyn’s report require careful reflection, including on further action to complete the redress schemes,” Mr Reynolds said.

“Government will promptly respond to the recommendations in full in parliament.”

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Public finances in ‘relatively vulnerable position.’, OBR warns

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Public finances in 'relatively vulnerable position.', OBR warns

The UK’s public finances are in a “relatively vulnerable position”, the government’s official forecaster has warned.

The Office for Budget Responsibility (OBR) cited a drag from successive economic shocks, recent U-turns on spending cuts and higher-than-expected policy commitments.

It sounded alarm over the projected path for debt as a result, in its annual fiscal risks and sustainability report.

It saw total debt above 270% of gross domestic product (GDP) by the early 2070s – up from a current level of 96.5% – declaring that rising debts have led to “a substantial erosion of the UK’s capacity to respond to future shocks”.

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The OBR’s report highlighted damage from the COVID pandemic and cost of living crisis that followed Russia’s invasion of Ukraine.

But it raised fears that past and current government policies were further harming the sustainability of the public finances.

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The report said that the pension triple lock, for example, was now estimated to cost £15.5bn annually by 2029-30.

That was “around three times higher than initial expectations”, it said.

The lock, which rises each year in line with inflation, wage growth or 2.5% – whichever is higher – had risen by more than the 2.5% base in eight of the 13 years of operation to date, the report stated.

The watchdog said it reflected more volatile inflation than expected.

It also picked up on the latest government U-turns over planned welfare and winter fuel payment cuts in the face of rebellions by Labour MPs.

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Welfare U-turn ‘has come at cost’

The decisions are expected to leave Chancellor Rachel Reeves facing a black hole of £6.75bn while weaker-than-expected economic growth could add a further £9bn to that sum in the run-up to the autumn budget, according to Sky News projections that see a void of around £20bn.

The OBR highlighted future risks from rising defence spending and the impact of climate change.

Public sector pay demands could also prove a drag, with resident doctors voting in favour of strikes over pay.

While ministers acknowledge damage to the public purse from the U-turns, Ms Reeves has repeatedly ruled out a new wave of borrowing to fund a spending spree.

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Could the rich be taxed to fill black hole?

As such, the government has not ruled out the prospect of some form of wealth tax to help meet its commitments despite the top 1% of earners contributing almost a third of all income tax already – on top of other targeted taxes such as capital gains.

The report said: “Efforts to put the UK’s public finances on a more sustainable footing have met with only limited and temporary success in recent years in the aftermath of the shocks, debt has also continued to rise and borrowing remained elevated because governments have reversed plans to consolidate the public finances.

“Planned tax rises have been reversed, and, more significantly, planned spending reductions have been abandoned.”

Shadow chancellor Mel Stride said of the report: “The OBR’s report lays bare the damage: Britain now has the third-highest deficit and the fourth-highest debt burden in Europe, with borrowing costs among the highest in the developed world.

“Under Rachel Reeves’ economic mismanagement and Keir Starmer’s weak leadership, our public finances have become dangerously exposed – vulnerable to future shocks, welfare spending rising unsustainably, taxes rising to record highs and crippling levels of debt interest.

“Labour’s recklessness risks it all – your pension, your job, your home, your savings.”

A Number 10 spokesman said: “We recognise the realities set out in the OBR’s report and we’re taking the decisions needed to provide stability to the public finances.”

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‘Widespread sexual violence’ took place during Hamas’s 7 October attacks, report by Israeli experts says

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'Widespread sexual violence' took place during Hamas's 7 October attacks, report by Israeli experts says

A newly released report led by Israeli legal and gender experts presents detailed evidence alleging “widespread and systematic” sexual violence during the Hamas-led terror attack on 7 October.

Warning: This story contains descriptions of rape and sexual violence

The findings, published by the Dinah Project, argue that these acts amount to conflict-related sexual violence (CRSV), and assert that “Hamas used sexual violence as a tactical weapon of war”.

The report draws on 18 months of investigation and is based on survivor testimonies, eyewitness accounts, and interviews with first responders, morgue personnel and healthcare professionals.

According to the Dinah Project, the documented patterns – such as forced nudity, gang rapes, genital mutilation, and threats of forced marriage – indicate a deliberate and coordinated use of sexual violence by Hamas operatives during the attack.

Reported incidents span at least six locations, including the Nova music festival, and several kibbutzim in southern Israel.

A destroyed car near the police station in Sderot, following the 7 October attacks by Hamas. Pic: AP
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A destroyed car near the police station in Sderot, following the 7 October attacks by Hamas. Pic: AP

One section of the report describes victims “found fully or partially naked from the waist down, with their hands tied behind their backs and/or to structures such as trees and poles, and shot”.

At the Nova music festival and surrounding areas, the investigators found “reasonable grounds to believe” that multiple women were raped or gang-raped before being killed.

The report’s findings are consistent with earlier investigations by the United Nations and the International Criminal Court (ICC).

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Israeli soldier describes arbitrary killing of civilians in Gaza

The UN’s Special Representative on Sexual Violence in Conflict previously concluded that there were “reasonable grounds to believe” CRSV took place during the attack.

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Destroyed vehicles near the grounds of the Supernova electronic music festival. Pic: AP

Significantly, the Dinah Project urges the international community to officially recognise the use of sexual violence by Hamas as a deliberate strategy of war and calls on the United Nations to add Hamas to its list of parties responsible for conflict-related sexual violence.

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The nature and scale of sexual violence on 7 October have been a subject of intense controversy, with some accusing parties of weaponising the narrative for political ends.

This report seeks to confront what its authors call “denial, misinformation, and global silence,” and to provide justice for the victims.

Hamas has denied that its fighters have used sexual violence and mistreated female hostages.

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