Trump victory may provide TikTok a lifeline to remain in the U.S.

Published

1 year ago

November 13, 2024

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Republican presidential nominee, former U.S. President Donald Trump, (C) greets attendees during a campaign stop to address Pennsylvanians who are concerned about the threat of Communist China to U.S. agriculture at the Smith Family Farm September 23, 2024 in Smithton, Pennsylvania.

Win Mcnamee | Getty Images

After Donald Trump won the U.S. presidency last week, tech CEOs including Apple‘s Tim Cook, Meta‘s Mark Zuckerberg and Amazon‘s Jeff Bezos publicly praised the president-elect.

One name was conspicuously missing: TikTok CEO Shou Zi Chew.

His absence was notable considering that of all the top tech companies, TikTok faces the most immediate and existential threat from the U.S. government. In April, President Joe Biden signed a law that requires China’s ByteDance to sell TikTok by Jan. 19. If ByteDance fails to comply, internet hosting companies and app store owners such as Apple and Google will be prohibited from supporting TikTok, effectively banning it in the U.S.

Trump’s return to the White House, though, may provide a lifeline for Chew and TikTok.

Although both Republicans and Democrats supported the Biden TikTok ban in April, Trump voiced opposition to the ban during his candidacy. Trump acknowledged the national security and data privacy concerns with TikTok in a March interview with CNBC’s “Squawk Box,” but he also said “there’s a lot of good and there’s a lot of bad” with the app.

Trump also leveraged TikTok’s shaky future in the U.S. as a reason for people to vote against Democrat Vice President Kamala Harris.

“We’re not doing anything with TikTok, but the other side is going to close it up, so if you like TikTok, go out and vote for Trump,” the president-elect said in a September post on his Truth Social service.

Since his election, Trump hasn’t publicly discussed his plans for TikTok, but Trump-Vance transition spokeswoman Karoline Leavitt told CNBC that the president-elect “will deliver.”

“The American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail,” Leavitt said in a statement.

Trump’s rhetoric on TikTok began to turn after the president-elect met in February with billionaire Jeff Yass, a Republican megadonor and a major investor in the Chinese-owned social media app.

Yass’s trading firm Susquehanna International Group owns a 15% stake in ByteDance while Yass maintains a 7% stake in the company, equating to about $21 billion, NBC and CNBC reported in March. That month it was also reported that Yass was a part owner of the business that merged with the parent company of Trump’s Truth Social.

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

If ByteDance doesn’t sell TikTok by the January deadline, Trump could potentially call on Congress to repeal the law or he can introduce a more “selective enforcement” of the law that would essentially allow TikTok to continue operating in the U.S. without facing penalties, said Sarah Kreps, a Cornell University professor of government. “Selective enforcement” would be akin to police officers not always enforcing every single instance of jaywalking, she said.

At TikTok, meanwhile, Chew has remained quiet since Trump’s victory, just as he had been in the lead-up to Election Day.

The Chinese-owned company may be taking a neutral approach and a wait-and-see strategy for now, said Long Le, a China business expert and Santa Clara University associate teaching professor.

Le said it’s hard to foresee what Trump will do.

“He’s also a contrarian; that’s what makes him unpredictable,” Le said. “He can say one thing, and the next year he’ll change his mind.”

TikTok didn’t respond to requests for comment.

Mark Zuckerberg, CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC.

Alex Wong | Getty Images

‘Facebook has been very bad for our country’

When it comes to social media apps, Trump’s campaign comments suggest he’s more concerned with TikTok rival Meta.

In his March interview with “Squawk Box,” Trump said Meta, which owns Facebook and Instagram, posed a much bigger problem than TikTok. He also said a TikTok ban would only benefit Meta, which he labeled “an enemy of the people.”

“Facebook has been very bad for our country, especially when it comes to elections,” Trump said.

But Trump’s negative views on Meta may have changed after comments by CEO Mark Zuckerberg over the past few months, Cornell’s Kreps said.

Zuckerberg described the photo of Trump raising his fist following a failed assassination attempt in July as “one of the most badass things I’ve ever seen in my life.” And after Trump’s win, Zuckerberg congratulated him, saying he was looking forward to working with the president-elect and his administration.

“My sense as an armchair psychologist of Trump is that he really likes people who sing his praises, and so his view on Zuckerberg and Meta, I would imagine, has changed,” Kreps said. “He might then just revert to his American economic nationalism here and say, ‘Let’s protect American industry and continue with the Chinese ban.'”

Meta didn’t respond to a request for comment.

Maintaining support of the TikTok ban could also win Trump political favor with lawmakers concerned about China’s global political and business influence, said Milton Mueller, a professor at Georgia Tech’s School of Public Policy.

“I don’t see him scoring big points politically by standing up for TikTok,” Mueller said, noting that few lawmakers, like Sen. Rand Paul, R-Ky., have opposed the ban.

Even if Trump does provide a lifeline for TikTok, it’s unclear how much damage that would do to his administration since many politicians are reluctant to publicly criticize him, Le said.

“They’re not going to challenge him because he just got so much power,” Le said.

Since launching his TikTok account in June, Trump has amassed over 14 million followers. Given his social media savvy, Trump may not want to make a decision that results in him losing the public attention and influence he’s gained on TikTok, Le said.

WATCH: TikTok is ‘digital nicotine’ for young people, says D.C. Attorney General Brian Schwalb

Technology

Figure AI sued by whistleblower who warned that startup’s robots could ‘fracture a human skull’

Published

7 hours ago

November 21, 2025

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$Figure AI sued by whistleblower who warned that startup's robots could 'fracture a human skull'$

Startup Figure AI is developing general-purpose humanoid robots.

Figure AI

Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”

Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”

The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.

In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”

The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.

Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.

The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.

Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.

Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.

The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.

Read the filing here: