In a bold move, former President Donald Trump has signed an executive order to establish a U.S. sovereign wealth fund, suggesting that it could be leveraged to acquire TikTok. The fund, expected to be developed within the next 12 months by the U.S. Treasury and Commerce Departments, raises numerous questions regarding its funding, structure, and potential impact on the tech industry and geopolitical relations.
A New Financial Powerhouse in the Making?
The concept of a sovereign wealth fund (SWF) is typically associated with countries rich in natural resources, such as Norway and Saudi Arabia, which use surplus revenue from oil exports to generate long-term economic growth. The U.S., however, does not currently operate a sovereign wealth fund on a national level, making this a groundbreaking move if successfully implemented.
Trump has hinted that the fund could be financed through tariffs and “other intelligent things,” a statement that leaves room for interpretation. Historically, tariffs have been a significant tool in Trump’s economic policy, particularly against China. If such a funding model is pursued, it could redefine U.S. economic strategies and global trade relations.
TikTok’s Uncertain Future in the U.S.
The fate of TikTok in the U.S. has been hanging in the balance for years due to concerns over data security, potential Chinese government influence, and the app’s massive user base of over 150 million Americans. Last month, Trump signed an executive order extending TikTok’s ban deadline by 75 days, offering a temporary reprieve but keeping uncertainty alive.
Despite the extension, TikTok experienced a temporary outage, going offline for approximately 12 hours before being restored. However, it remains absent from major app stores, leaving new users unable to download the app. The situation has fueled speculation about the government’s next course of action and whether a forced sale to a U.S. company remains the ultimate goal.
Who Might Buy TikTok?
Trump has previously mentioned that several high-profile business leaders have expressed interest in acquiring TikTok, with Microsoft emerging as a strong contender in recent discussions. The tech giant has the infrastructure and resources to manage such a platform, making it a plausible buyer.
However, other prominent names have also been floated, including Tesla CEO Elon Musk and Oracle co-founder Larry Ellison. Musk, known for his ambitious ventures in AI and social media (most notably his acquisition of Twitter, now X), could see TikTok as a strategic addition to his digital empire. Meanwhile, Ellison’s Oracle has previously sought to acquire TikTok’s U.S. operations, viewing it as a valuable expansion into the social media and data analytics space.
What’s Next?
Trump has stated that a definitive decision on TikTok’s fate will likely come in February. Whether the app will face another ban attempt, undergo a forced sale, or be integrated into a newly formed sovereign wealth fund remains uncertain. If the U.S. government does acquire TikTok, it could mark a historic shift in how social media platforms are managed and regulated.
While many details remain unclear, one thing is certain—TikTok’s future in the U.S. is far from settled. The coming months will be crucial in determining whether this widely popular app will remain in the hands of its Chinese parent company, ByteDance, or transition into American ownership.
Conclusion
Trump’s proposal to create a U.S. sovereign wealth fund and potentially use it to purchase TikTok is an unprecedented move with far-reaching implications. If implemented, it could reshape the U.S. economy, influence global tech ownership, and redefine government intervention in private industry. With February fast approaching, all eyes will be on Washington to see how this high-stakes drama unfolds.
