Kevin O'Leary Says TikTok Deal Is Dead — And U.S. Law Must Finally Decide Who Owns Your Data

Yahoo

15 hours ago

Celebrity investor Kevin O'Leary says the window to buy TikTok with its current Chinese-owned algorithm has officially closed. As a new 90-day deadline ticks down, O'Leary is sounding the alarm: TikTok's future in the U.S. hangs in the balance, and at the heart of it is a much bigger issue — who truly owns your personal data?
TikTok's Chinese parent company, ByteDance, is under pressure from a U.S. law enacted last year that requires it to sell its TikTok assets in the U.S. or face a nationwide ban. The law was upheld by the Supreme Court, but enforcement has been repeatedly delayed. Most recently, President Donald Trump granted a 90-day extension until September, marking the third postponement.
Don't Miss:
Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share.
Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential.
While TikTok has continued to operate, critics say these delays are avoiding a key national security concern: the possibility that the Chinese government could access American user data. Beijing denies this, but many U.S. lawmakers remain skeptical.
According to O'Leary, a new sale involving TikTok's existing algorithm is no longer on the table. "We know that we can't buy the algorithm," he said in a video he posted to X. "So we're gonna have to rewrite this whole thing."
O'Leary is part of a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian proposing a new version of TikTok — one without Chinese-owned code. Their goal? Create a U.S.-based platform that puts data ownership in the hands of users, not corporations.
The alternative, O'Leary warns, is a legal minefield. "Every mothers' group and state attorney general is suing social media," he said. "All stemming from the fact that the platform owns the data and the customer doesn't."
Trending: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — Now Raising at $3/Share
O'Leary also tied the TikTok debate to the broader issue of U.S. technology exports, especially AI chips made by companies like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).
He used a bee analogy to explain: The chip is the queen bee, and software developers are the honeybees building AI — or "honey" — on that chip. O'Leary argued there will soon be only two types of AI: "American honey" and "Chinese honey."
"If you want the world running on Chinese honey, stop shipping American queen bee chips," he said. His point: limiting chip exports could backfire by encouraging foreign adversaries to build their own alternatives — like TikTok.Unless Congress acts or a new buyer is found, TikTok could be pulled from U.S. app stores after the September deadline. O'Leary believes this is likely the "last extension."
As lawmakers debate national security, global trade, and personal privacy, the clock keeps ticking.
One thing is clear: TikTok's fate is tied not just to politics, but to a fundamental question about the future of the internet — who controls the data, and who gets to decide?
Read Next: Are you rich? Here's what Americans think you need to be considered wealthy.
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
ADVANCED MICRO DEVICES (AMD): Free Stock Analysis Report
NVIDIA (NVDA): Free Stock Analysis Report
This article Kevin O'Leary Says TikTok Deal Is Dead — And U.S. Law Must Finally Decide Who Owns Your Data originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.