Vinod Khosla and Jacob Helberg.
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Investor Vinod Khosla and Palantir consultant Jacob Helberg wrote one I open a letter On Thursday calling on senators to pass a bill that would force a divestment of Bytedance-owned TikTok in the US
Describing the social media platform as a “weapon of war,” Helberg and Khosla compared the bill to decades-old restrictions on foreign U.S. media ownership.
“Would you let North Korea or Iran have a broadcast channel that 67% of teenagers spend almost two hours a day on?” the two wrote.
Some critics compared the ban to a invoice, since it singles out one company. In an interview with CNBC, Helberg said the comparison doesn’t apply.
“We have a long tradition of policymaking in America — sometimes targeting individual companies when national security is at stake,” Helberg said. The bill, which passed the House overwhelmingly in March, would require Bytedance to either find a buyer for TikTok or face a US ban
However, Bytedance is not on the sidelines. The company mobilized its user base to oppose the House bill, urging its millions of users to call their representatives in Congress and voice their opposition. The in-app notifications triggered a flood of phone calls that overwhelmed some congressional offices.
Helberg said the effort was a prime example of the risk TikTok poses. “It was a vivid demonstration of exactly the kinds of concerns we were trying to highlight to elected officials,” he told CNBC. “All these previously theoretical concerns were highlighted in full Technicolor for all to see.”
Khosla is the founder of Khosla Ventures and co-founder of Sun Microsystems. Helberg is a senior consultant at Palantir, an artificial intelligence company that takes on extensive government contracts, including with the US Department of Defense.
Both are also deeply involved with the Hill and Valley Forum, a task force that first convened in 2023 to combat Chinese government influence, and TikTok in the US Hill and Valley is set to reconvene in May.
TikTok CEO Shou Zi Chew also lobbied D.C. lawmakers against a ban, meeting with Sen. John Fetterman, D-Pa., in March.
Battle lines drawn
Shou Zi Chew, CEO of TikTok, speaks to reporters outside the office of Senator John Fetterman (D-PA) in the Russell Senate Office Building on March 14, 2024 in Washington, DC. The House of Representatives has voted to ban TikTok in the United States unless Chinese parent company ByteDance sells the popular video app within the next six months.
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While the letter was addressed to all senators, Helberg said he especially hoped Sens. Chuck Schumer, DN.Y., and Maria Cantwell, D-Wash., would pay attention. Schumer is Senate Majority Leader and Cantwell is the chairman of the Senate Commerce Committee.
But TikTok has seemingly received apparent support from an unexpected source: the former President Donald Trump. One week after Trump met with top Republican donor and Bytedance investor Jeff Yassthe former president said he was opposed to banning TikTok, saying it would give too much of an advantage Afterwhich owns Instagram.
Helberg said he didn’t think Trump was completely opposed to Khosla and his efforts. “If you look at his statements, he has expressed very strong concerns about bias and censorship against conservative voices online,” Helberg told CNBC. Trump is the presumptive 2024 Republican presidential nominee.
But Trump’s commentary, coupled with opposition from China’s foreign ministry, has raised questions about whether a divestment is still possible. China has said it is completely opposed to selling TikTok, which would require an export license from the government. That contrast, wrote Khosla and Helberg, “tells you what you need to know: TikTok is a ‘core political asset,’ not a commercial enterprise.”
Top investors, including former Treasury Secretary Steven Mnuchin and former Activision Blizzard CEO Bobby Kotick, are among those circling the app, which will likely be valued in the tens of billions of dollars.
When asked what the odds would be between a divestment and a ban, Helberg demurred.
“If the Chinese Communist Party operates in good faith and lives up to its claims, a divestment will be done in an orderly manner,” he said. “There are many willing buyers in the United States.”
TikTok did not immediately respond to a request for comment.
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