Vinod Khosla and Jacob Helberg.

Patrick T. Fallon | AFP | Image Unity Getty Images

Investor Vinod Khosla and Palantir Adviser Jacob Helberg wrote an open letter on Thursday calling on senators to pass a bill that would force the distribution of ByteDance-owned TikTok in the US.

Calling the social media platform “a weapon of war,” Helberg and Khosla compared the bill to decades-old restrictions on foreign ownership of U.S. media outlets.

“Would you allow North Korea or Iran to own a broadcast channel that 67 percent of teenagers spend almost two hours a day on?” Both wrote.

Some critics have compared the ban to a bill of lading, since it singles out a company. In an interview with CNBC, Helberg said the comparison doesn’t apply.

“We have a long tradition in American policymaking — sometimes we target individual companies, when national security is at stake,” Helberg said. The bill, which was overwhelmingly passed by the House in March, would require ByteDance to either find a buyer for TikTok or face a US ban.

However, ByteDance isn’t sitting on the sidelines. The company mobilized its customer base in opposition to the House bill, urging millions of its customers to call their congressional representatives and voice their opposition. The in-app notifications triggered a flood of phone calls that overwhelmed some congressional offices.

Helberg said the effort is a prime example of TikTok’s vulnerability. “It was a live demo of exactly the kinds of concerns that we’re trying to highlight to elected officials,” he told CNBC. “All these concerns that were previously theoretical were highlighted in full Technicolor for all to see.”

Khosla is the founder of Khosla Ventures and co-founded Sun Microsystems. Helberg is a senior consultant at Palantir, an artificial intelligence firm that does extensive government contract work, including for the U.S. Department of Defense.

The two are also closely associated with the Hill and Valley Forum, a working group first convened in 2023 to counter Chinese government influence, and TikTok is scheduled to meet again in May in the US Hill and Valley. .

TikTok CEO Shu Zhiqiu has lobbied D.C. lawmakers against the ban, meeting with Sen. John Fetterman, D-Pa., in March.

Battle lines were drawn.

TikTok CEO Shu Zhiqiu speaks to reporters outside the office of Sen. John Fetterman (D-PA) at the Russell Senate Office Building on March 14, 2024 in Washington, DC. The House of Representatives voted to ban TikTok in the United States unless Chinese-owned parent company ByteDance sells the popular video app within the next six months.

Anna Money Maker | Getty Images

While the letter was written to all senators, Helberg said he especially hoped that Senators Chuck Schumer, D-N.Y., and Maria Cantwell, D-Va., would take notice. Schumer is the Senate Majority Leader and Cantwell chairs the Senate Commerce Committee.

But TikTok has apparently received support from an unlikely source: former President Donald Trump. A week after Trump met with top Republican donor and Bitcoin investor Jeff Yass, the former president signaled that he opposes a ban on TikTok, saying it would greatly benefit Meta, which owns Instagram. is the owner of

Helberg said he doesn’t think Trump is 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.

Nonetheless, Trump’s comments, combined with opposition from China’s foreign ministry, have raised questions about whether a defection is possible. China has said it strongly opposes the sale of TikTok, which would require an export license from the government. That opposition, Khosla and Helberg wrote, “tells you what you need to know: TikTok is a ‘critical political asset,’ not a commercial enterprise.”

High-profile investors, including former Treasury Secretary Steven Mnuchin and former Activision Blizzard CEO Bobby Kotick, are among those circling the app, which could potentially be valued in the tens of billions of dollars.

When asked what the odds would be between distribution and banning, Helberg demurred.

“If the Chinese Communist Party acts in good faith and sticks to its claims, there will be an orderly split,” he said. “There are many willing buyers in the United States.”

WATCH: Former Treasury Secretary Mnuchin Says He’s Forming Investor Group to Acquire TikTok



Source link