U.S. President Donald Trump expressed in a recent press briefing openness to the idea of Tesla CEO Elon Musk or Oracle Chairman Larry Ellison purchasing TikTok. This announcement came during a discussion about a joint venture focused on investing in artificial intelligence infrastructure. When asked if he would support Musk’s potential acquisition of TikTok, Trump responded affirmatively, saying, “I would be if he wanted to buy it, yes. I’d like Larry to buy it, too.”
TikTok’s uncertain future
TikTok, owned by China’s ByteDance, is currently navigating a complex situation in the U.S. following Trump’s executive order that allows the app to continue operating for 75 days. This decision aims to suspend a ban that was set to take effect after the Supreme Court upheld a national security law. This law would penalize app stores and service providers for hosting TikTok unless ByteDance divested its U.S. operations. Analysts estimate that TikTok’s U.S. business is valued at approximately $50 billion.
Trump commented on the app’s valuation, noting that it would be “worthless” without the necessary U.S. permits to operate, but could soar to $1 trillion with those permits in place.
Read more: TikTok resumes services for 170 million U.S. users after Trump promises executive order
Musk’s influence and Ellison’s connections
Elon Musk, who also leads SpaceX and owns the social media platform X, has been a significant financial supporter of Trump’s campaigns, positioning him to have considerable influence within the administration. Meanwhile, Larry Ellison has long been an ally of Trump, with Oracle serving as TikTok’s cloud infrastructure provider in the U.S. Their relationship dates back to Trump’s first term, during which Ellison played a crucial role in negotiations to separate TikTok from its Chinese ownership.
Oracle remains a trusted data storage provider for TikTok, which helps keep the app available for U.S. users, despite potential fines of $5,000 per user under U.S. law for non-compliance. The company has been frequently mentioned as a potential buyer of TikTok’s U.S. operations, which must find non-Chinese ownership within the next 75 days to avoid a permanent ban.
Trump’s proposal for TikTok
During the briefing, Trump suggested a unique proposal: “What I’m thinking about saying to somebody is, buy it and give half to the United States of America. And we’ll give you the permit.” He emphasized that ByteDance would have “the ultimate partner” in the U.S., making the investment worthwhile in terms of permits and operational support.
Trump’s stance on TikTok has notably changed since his first term. Initially, he signed an executive order aiming to ban the app, which was later blocked by a federal court that deemed his actions “arbitrary and capricious.” However, after a meeting with billionaire Republican donor Jeff Yass, a major investor in ByteDance, Trump began to speak more favorably about the platform. Interestingly, TikTok CEO Shou Chew was present at Trump’s inauguration, highlighting the evolving relationship.
Ellison’s background and business acumen
Larry Ellison, who founded Oracle in 1977, built his fortune by providing data server solutions to clients such as the CIA. Oracle was initially a competitor to tech giants like Microsoft and IBM, and under Ellison’s leadership, it became the world’s largest database management company. Despite Oracle’s market value being smaller than companies like Google and Amazon, it has witnessed growth amid the AI boom, reflecting increasing demand for data services.
Ellison’s career has been marked by a bold corporate culture and ambitious acquisition strategies. He has made headlines for his confrontations with tech titans like Bill Gates and Eric Schmidt, while also forming alliances with figures such as Steve Jobs during a pivotal time in Apple’s history.
A complex relationship with Musk
Ellison’s ties with Musk have strengthened over the years, with significant investments, including $1 billion in Musk’s acquisition of Twitter. Ellison also serves on Tesla’s board as a major shareholder. His extensive real estate portfolio includes a $300 million Hawaiian island, which he envisions as an eco-resort for the ultra-wealthy—a place where Musk is known to visit.
As the situation surrounding TikTok continues to unfold, the potential involvement of Musk or Ellison in its acquisition could reshape the app’s future in the U.S.
