The real reason Microsoft wants to buy TikTok

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The real reason Microsoft wants to buy TikTok
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More than merely appealing to the young users of TikTok, Microsoft could use the data culled from its videos to better compete against its AI rivals

with TikTok parent ByteDance to acquire the app’s operations in the United States, Canada, Australia and New Zealand.“If AI is the new electricity, the fuel that powers these plants is data,” said Oren Etzioni, chief executive of the Allen Institute for Artificial Intelligence, a Seattle research firm started by Microsoft co-founder Paul Allen.TikTok has no shortage of data in the form of videos, billions of which are uploaded to the service every year.

“For the other big AI players, they have some very large sources of consumer video data,” Goodman said. Microsoft “uniquely doesn’t have access to that among the big AI companies.”from operating in the United States, after the administration raised national security concerns that ByteDance could hand over data on Americans to the Chinese government. Despite earlier considering ordering a sale of the app, Trump on Friday evening said he was not in favor of that path.

And Microsoft, which has thrived financially in recent years on the strength of its cloud-computing services, has time on its side. Given the Sept. 15 deadline, ByteDance needs to unload TikTok’s U.S. operations or risk losing the business altogether.

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