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TikTok Denies Reports of Potential US Sale to Elon Musk

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TikTok has categorically denied reports suggesting that its U.S. operations might be sold to billionaire Elon Musk.

This statement came in response to a Bloomberg report claiming that Chinese officials were considering selling TikTok’s U.S. business to Musk if their efforts to overturn an impending ban in the Supreme Court failed.

“We can’t be expected to comment on pure fiction,” a TikTok spokesperson told Variety.

TikTok’s Legal Battle Over U.S. Ban

The platform is currently awaiting a Supreme Court ruling on whether the ban violates the First Amendment. On January 10, justices heard arguments, with initial indications suggesting they might uphold the ban. The restriction is set to take effect on January 19.

The ban stems from legislation signed by President Joe Biden in April 2024, allowing the government to block foreign-owned apps viewed as potential threats to national security. TikTok faces a January 19 deadline to divest its U.S. operations or risk removal from app stores across the country. Instead of complying, TikTok has chosen to challenge the law in court.

Reports of Contingency Plans

According to Bloomberg, Chinese officials are reportedly exploring alternative options, including the possibility of selling TikTok’s U.S. branch. One scenario mentioned involves Musk’s company, X (formerly Twitter), taking over TikTok’s U.S. operations in collaboration with ByteDance, the app’s Chinese parent company.

This speculation has drawn attention due to Musk’s perceived alignment with President-elect Donald Trump. Trump recently requested the Supreme Court delay the ban, stating his intention to address the issue diplomatically after taking office.

Broader Context and Implications

The situation highlights the ongoing tension between the U.S. and China over issues such as data security and technological influence. While TikTok has consistently denied accusations of data misuse or ties to the Chinese government, the app has become a flashpoint in broader geopolitical conflicts.

A potential sale to Musk could significantly reshape TikTok’s U.S. operations, aligning them with the vision of an entrepreneur already transforming social media under his leadership. However, TikTok’s outright dismissal of such claims indicates its commitment to maintaining its independence and fighting the ban through legal channels.

As the Supreme Court decision looms, the future of TikTok in the U.S. hangs in the balance, with far-reaching implications for its American user base and the global tech ecosystem.

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Meta is pushing deeper into AI territory with new AI-editing tools in Instagram Stories, where users can edit images and videos simply by typing in what they want to modify. From hair color to special effects, the feature upends the possibilities of creators and regular users alike to personalize their content.

Text Prompts Meet Visual Creativity

Until now, Instagram’s AI editing tools were primarily accessible through Meta AI’s chatbot, which required users to interact via direct messages. With this latest integration, however, AI editing becomes native to Stories, allowing anyone to make instant visual edits using plain language commands.

These new edit features come under the “Restyle” menu that can be accessed using the paintbrush icon in Instagram Stories. One can type commands such as “give me a sunset background,” “remove the person in the corner,” or “color my hair pink.” The AI carries out the edit one wants within seconds.

Meta suggests that users only have three primary actions to select from — Add, Remove, or Change — while specifying what they’d like to alter. The AI will automatically add objects, alter appearances, or completely restyle the photo based on what they’ve described.

Preset Effects and Dynamic Video Edits

In addition to custom prompts, Instagram also has pre-select AI effects that can beautify or stylize posts. Filters like sunglasses, a denim jacket, or even a watercolor art effect can be applied.

On video content, the feature does even better — creators are able to superimpose atmospheric effects like falling snow, glowing embers, or cinematic lighting, which makes Stories appear more polished and professional without the necessity of using editing apps.

Privacy and AI Usage Terms

While the new features enable creativity, they come with privacy implications. Being used to introduce users to Meta’s Terms of Service for AI, which allow the company to “analyze photos and videos, including facial data, to make AI better.” According to Meta, it allows its systems to “summarize image contents, edit images, and generate new content based on the image.”

Critics have also had concerns regarding the ways in which such data might be used to train Meta’s broader AI models, though the company has sworn to remain committed to responsible innovation and transparency.

Meta’s Expanding AI Push

The release of AI editing software is just part of Meta’s overall strategy to roll out artificial intelligence on every platform it has, from Facebook and Instagram to WhatsApp. Recently, Meta began beta-testing a “Write with Meta AI” feature, which helps users compose intelligent or engaging comments under Instagram posts.

Meanwhile, Meta’s separate Meta AI app — with its chatbot and new “Vibes” AI-generated video stream — has been picking up steam. According to Similarweb estimates, iOS and Android daily active users rose from 775,000 to 2.7 million over a four-week span as of October 17.

Protecting Younger Users

As a response to increasing complaints from regulators and parents, Meta has also added new parental tools for its AI features. Parents may now shut off chats with AI characters and filter topics that their teens have with the chatbot to provide a safer online environment.

With these new instruments, Instagram is not only emerging as a social network but a creative platform fueled by generative AI. With Meta, OpenAI, and Google competing for leadership, this launch shows how AI is becoming more a part of the social fabric of our era — blurring the line between creativity, technology, and self-expression.

Meta is rolling out red carpet treatment for AI startups with its new Llama for Startups initiative—offering cash, technical support, and exclusive access to its AI engineering team. But beneath the generous facade lies a fierce battle for dominance in the trillion-dollar generative AI market.

What Startups Get From Meta’s Program

  • 💰 **Up to 36,000∗∗(36,000∗∗(6K/month for 6 months) in cloud credits
  • 🤝 Direct engineering support from Meta’s Llama team
  • 🔧 Early access to custom Llama model fine-tuning tools
  • 🌐 Networking with other AI-first startups

Eligibility requirements are surprisingly accessible:

  • U.S.-based incorporation
  • Less than $10M in total funding
  • At least one developer on payroll
  • Building generative AI products

Deadline to apply: May 30, 2024

Why Meta Needs Startups More Than Ever

Despite 1 billion+ Llama downloads, Meta faces mounting pressure:

🔥 Competitive Threats

  • Google’s Gemini and Anthropic’s Claude dominate enterprise adoption
  • OpenAI’s GPT-4o leads in multimodal capabilities
  • Mistral, DeepSeek, and Alibaba’s Qwen are winning open-source favor

🚨 Recent Llama Stumbles

  • Llama 4 Behemoth delayed due to underperformance (WSJ)
  • Benchmark cheating allegations on LM Arena leaderboard
  • Public vs. “optimized” model discrepancies eroding trust

💸 Meta’s Make-or-Break AI Bet

  • Projecting 2B−2B−3B AI revenue in 2025
  • Banking on 460B−460B−1.4T by 2035 (yes, trillion)
  • Spending $900M+ annually just on GenAI R&D

The Hidden Strategy Behind the Startup Play

This isn’t just altruism—it’s a three-pronged chess move:

  1. Lock-In Future Customers
    Startups that build on Llama today become enterprise buyers tomorrow.
  2. Crowdsource Innovation
    Early adopters essentially beta-test new Llama capabilities for free.
  3. Combat Open-Source Defections
    With alternatives like Mistral gaining traction, Meta needs to make Llama indispensable.

What’s Really at Stake?

Meta’s playing a long infrastructure game:

  • 60B−60B−80B earmarked for 2025 data centers
  • Revenue-sharing deals with cloud providers hosting Llama
  • Future Llama API monetization (Zuck hinted at ads/subscriptions)

For startups, the calculus is simple:
✅ Free money and support in a cash-strapped AI winter
❌ Risk of vendor lock-in as Llama evolves

Should Your Startup Apply?

The case for jumping in:

  • If you’re already using Llama, this is free acceleration
  • Early access could provide competitive edge
  • Meta’s engineering insights are gold dust for product refinement

Reasons to hesitate:

  • $36K doesn’t go far with today’s GPU costs
  • Potential IP concerns working closely with a tech giant
  • Llama’s long-term roadmap remains uncertain

The Bottom Line

Meta’s throwing a Hail Mary to cement Llama as the open-weight model of choice. For scrappy AI startups, it’s a rare chance to piggyback on Meta’s war chest—just don’t mistake it for a long-term partnership.

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