TikTok’s fate in the U.S. is still up in the air, caught in a web of national security debates, and some unorthodox ideas from President Donald Trump.
Among those ideas is one that’s raising eyebrows: The creation of a U.S. sovereign wealth fund to potentially purchase the app outright. It’s a move that would be unprecedented for the U.S., and, like much of the TikTok story, it raises more questions than answers.
Earlier this year, a law took effect requiring ByteDance, TikTok’s Chinese owner, to sell its U.S. operations or face a ban outright. The concern? That the Chinese government could access the app’s data to spy on American users. In response, Trump stepped in with an executive order to delay the enforcement of the ban by 75 days, giving ByteDance a temporary reprieve and allowing TikTok to resume operations. The app’s presence on Apple and Google app stores, however, wasn’t immediately restored, as both companies waited for assurances they wouldn’t face penalties for hosting it.
By Feb. 13, TikTok was officially back in U.S. app stores, much to the relief of its massive user base, which accounts for nearly half of all Americans. The app’s popularity has only grown, with more than 52 million U.S. downloads in 2024 alone.
TikTok’s return to the app stores, however, doesn’t mean its problems are solved
Trump signs an executive order to create to start the process of creating an American sovereign wealth fund pic.twitter.com/JruvfcdWkc
— Aaron Rupar (@atrupar) February 3, 2025
The threat of a ban still looms, and ByteDance remains under pressure to divest its U.S. operations.
Trump has taken a hands-on approach to the TikTok issue, framing it as both a national security concern and a business opportunity. After delaying the ban, he told reporters that the U.S. is entitled to “50% of TikTok” because of the government’s role in facilitating any potential sale. He’s also warned China against interfering with any sale, threatening tariffs as high as 100% if ByteDance attempts to block or delay the process. While such threats are consistent with Trump’s broader trade policies, they add another layer of complexity to an already delicate situation.
Meanwhile, TikTok’s uncertain status has attracted interest from multiple potential buyers. Among them is Frank McCourt, the former owner of the Los Angeles Dodgers, who has shown interest in acquiring the app. Meanwhile, tech entrepreneur Jesse Tinsley is leading a group preparing an all-cash proposal to buy TikTok. Interestingly, MrBeast, has also joined forces with Tinsley’s group, signaling his intent to be part of the bid for the highly sought-after platform.
And then there’s Trump’s wildcard idea: A U.S. sovereign wealth fund. On Feb. 3, he signed an executive order directing the Treasury and Commerce Departments to develop a plan for creating such a fund within 90 days. The idea is to use the fund to make direct investments in assets like TikTok, bypassing the need for private buyers entirely. Sovereign wealth funds are typically associated with countries like Norway, Saudi Arabia, and Singapore, which use them to invest surplus government revenue.
Trump’s executive order was light on details, leaving many questions unanswered: How would the fund be structured? Where would the money come from? What governance model would it follow? Creating a sovereign wealth fund would require congressional approval, a tall order given the polarized political climate. Still, Trump seems undeterred. “We’re going to be doing something, perhaps with TikTok, and perhaps not,” he said recently. “If we make the right deal, we’ll do it. Otherwise, we won’t…we might put that in the sovereign wealth fund.”
If the U.S. does create a sovereign wealth fund, it would mark a significant shift in how the government approaches economic policy and tech investments. It could also set a precedent for future interventions in foreign-owned companies operating in the U.S. But the idea isn’t without risks. Government ownership of a social media platform could raise ethical questions about free speech, censorship, and market competition.
So, as far as TikTok’s future is concerned, it remains as uncertain as ever.
