National Security – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Mon, 08 Jun 2026 06:26:35 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png National Security – Tech | Business | Economy https://techeconomy.ng 32 32 Defence Minister Advocates Shift to Homegrown Technology at Omniverse Africa 3.0 https://techeconomy.ng/defence-minister-advocates-shift-to-homegrown-technology-at-omniverse-africa-3-0/ https://techeconomy.ng/defence-minister-advocates-shift-to-homegrown-technology-at-omniverse-africa-3-0/#respond Mon, 08 Jun 2026 06:26:35 +0000 https://techeconomy.ng/?p=182985 General Christopher Gwabin Musa (Rtd), Nigeria’s minister of Defence, has called on the country’s technology ecosystem to play a central role in addressing national security challenges, stressing that future defence capabilities will depend as much on innovation and technology as on conventional military assets.

Speaking at the Omniverse Africa 3.0 Summit in Lagos, the Defence Minister challenged innovators, startups, researchers, and technology entrepreneurs to develop indigenous solutions that can strengthen Nigeria’s security architecture and reduce dependence on foreign defence technologies.

Delivering a keynote address titled “The 70/30 Rule: Why Nigeria’s Security and Innovation Agendas are the Same National Project,” Musa argued that modern security threats require a new approach that combines military capability with technological innovation, industrial development, and strategic foresight.

“The future requires us to complement courage with technology, foresight, industrial capability, and innovation,” the minister said, emphasizing the need for Nigeria to transition from being a consumer of defence technologies to becoming a producer of strategic capabilities.

Security in the Age of AI and Robotics

According to Musa, the Ministry of Defence is already implementing reforms designed to position emerging technologies at the heart of Nigeria’s defence strategy.

These efforts focus on areas such as artificial intelligence, robotics, unmanned systems, cybersecurity, surveillance technologies, secure communications, and data-driven decision-making tools.

He noted that traditional military hardware alone can no longer adequately address the complex and evolving nature of contemporary security threats, making technology innovation an essential component of national security planning.

The minister also linked the initiative to the Federal Government’s broader industrialisation agenda, noting that reforms at the Defence Industries Corporation of Nigeria are aimed at creating a sustainable ecosystem where defence investments stimulate economic growth, support research and development, create high-value jobs, and encourage local manufacturing.

Defence Meets Innovation Ecosystem

A major highlight of the summit was the launch of the Defence Futures Lab Pathway, an initiative designed to foster collaboration between the armed forces, academia, startups, and technology innovators.

Musa explained that the platform is intended to serve as a strategic innovation hub rather than a procurement programme, providing stakeholders with an opportunity to explore emerging technologies and develop long-term solutions capable of strengthening Nigeria’s defence capabilities.

Participants are expected to reconvene in the coming months to assess progress, evaluate proposed solutions, and align innovations with national security priorities.

The Defence Minister’s call at Omniverse Africa 3.0 signals a growing recognition that national security and technological innovation are increasingly intertwined.

As cyber threats, artificial intelligence, autonomous systems, and digital warfare reshape global defence strategies, Nigeria is seeking to build local capabilities that can support both security objectives and economic development.

For Nigeria’s growing technology ecosystem, the message is clear: the next frontier for innovation may not only be fintech, e-commerce, or telecommunications, but also the development of homegrown technologies capable of securing the nation’s future.

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TikTok Forms Majority U.S.-Owned Venture to Protect Data, Avoid Ban https://techeconomy.ng/tiktok-us-joint-venture-data-security/ https://techeconomy.ng/tiktok-us-joint-venture-data-security/#respond Fri, 23 Jan 2026 08:43:10 +0000 https://techeconomy.ng/?p=174773 TikTok’s Chinese parent, ByteDance, has finalised a major restructuring of its U.S. operations, creating a majority American-owned joint venture aimed at safeguarding U.S. user data. 

The development comes after years of legal and political challenges, which threatened to ban the app for more than 200 million Americans.

The new entity, TikTok USDS Joint Venture LLC, will house U.S. user data and algorithms under strict cybersecurity measures. American and global investors will hold 80.1% of the venture, leaving ByteDance with 19.9%. 

Oracle, Silver Lake, and Abu Dhabi-based MGX are the managing investors, each with a 15% stake. TikTok’s U.S. data and recommendation algorithm will be hosted on Oracle’s U.S. cloud, allowing oversight while ByteDance continues to manage revenue-generating operations like advertising and e-commerce.

The venture’s leadership includes former TikTok USDS executives Adam Presser as CEO and Will Farrell as chief security officer. TikTok CEO Shou Chew joins the board to provide strategic guidance. 

The JV will retrain and update TikTok’s content algorithm to ensure it operates solely on U.S. user data.

This deal results from the Protecting Americans from Foreign Adversary Controlled Applications Act, passed in April 2024. The law required ByteDance to divest TikTok’s U.S. assets or face a nationwide ban, a provision upheld by the Supreme Court in January 2025. 

Without the divestiture, TikTok risked removal from app stores and halted updates, which could have significantly weakened the platform’s U.S. presence.

The agreement received bipartisan attention. Former President Donald Trump, who first tried to ban the app in 2020 over national security concerns, praised the venture as “owned by a group of Great American Patriots and Investors.” 

The White House confirmed that both U.S. and Chinese authorities signed off on the deal, although the Chinese Embassy in Washington has not yet commented publicly.

The joint venture is part of a U.S.-China technology rivalry. In separating U.S. user data and algorithms from ByteDance’s global operations, the structure aligns with earlier national security debates surrounding Chinese tech firms. 

TikTok’s U.S. operations are effectively split, the venture oversees data and backend operations, while ByteDance maintains commercial operations, including e-commerce and advertising.

Investors include high-profile firms such as the Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital. 

TikTok aims to comply with U.S. law and also to reassure users and regulators about data security while maintaining the app’s growth and influence in the U.S.

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TikTok U.S. Deal: ByteDance Cuts Stake as Oracle-Led Investors Take Control https://techeconomy.ng/tiktok-us-joint-venture-bytedance-oracle-deal/ https://techeconomy.ng/tiktok-us-joint-venture-bytedance-oracle-deal/#respond Fri, 19 Dec 2025 07:35:30 +0000 https://techeconomy.ng/?p=172967 TikTok has agreed to place its U.S. operations under a new joint venture controlled by American and global investors led by Oracle.

This is designed to avert a nationwide ban and settle long-running security challenges with Washington.

Under the binding agreement, ByteDance will cut its stake to 19.9%, while investors led by Oracle, Silver Lake and Abu Dhabi’s MGX will collectively take 80.1% ownership of a newly formed company, TikTok USDS Joint Venture LLC. 

The structure is intended to satisfy U.S. laws that demand the separation of TikTok’s American business from Chinese control.

The arrangement follows legislation passed by Congress in April 2024 that required ByteDance to divest TikTok’s U.S. operations or face a ban. The Supreme Court upheld the law in January 2025, setting a January deadline. This joint venture, due to close on 22 January, is meant to meet that requirement.

Ownership alone, however, has not ended the issue. The new entity will be run by a seven-member board, with Americans holding most seats. ByteDance will appoint one director. Oracle has been named the “trusted security partner” and will be responsible for auditing compliance and protecting US user data, which will be stored on Oracle’s cloud infrastructure inside the United States.

TikTok’s chief executive, Shou Zi Chew, told staff that the venture would “operate as an independent entity with authority over U.S. data protection, algorithm security, content moderation and software assurance,” according to an internal memo. 

He also said TikTok’s global US entities would separately handle “global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing”.

Even so, there’s still uncertainty over the heart of the platform, its recommendation algorithm. Former U.S. officials and analysts say it is still not clear if the algorithm has been transferred, licensed, or remains under ByteDance’s control, with Oracle potentially limited to oversight rather than ownership.

Reports from Chinese media have suggested ByteDance may continue to play an operational role or receive revenue from the US business, leading to questions about Beijing’s influence despite the new structure.

President Donald Trump has openly credited TikTok with helping his re-election and maintains a large following on the app. His administration has also launched an official White House TikTok account. At the same time, Trump’s close ties to Oracle chief executive Larry Ellison have drawn criticism from Democrats.

Senator Elizabeth Warren has been among the most vocal opponents, saying: “Trump wants to hand over even more control of what you watch to his billionaire buddies. Americans deserve to know if the president struck another backdoor deal for this billionaire takeover of TikTok.”

Trump previously said high-profile investors, including Michael Dell and Rupert Murdoch, could be involved, though there are no reports about who ultimately joined the final deal.

This agreement ends the immediate threat of a ban, but not the argument around influence and control. 

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ITSSP Calls for Stronger Cybersecurity Frameworks, Local Innovation and Clearer Laws Ahead of 2025 Conference https://techeconomy.ng/itssp-stronger-cybersecurity-laws-2025-conference/ https://techeconomy.ng/itssp-stronger-cybersecurity-laws-2025-conference/#respond Thu, 16 Oct 2025 08:59:27 +0000 https://techeconomy.ng/?p=169410 The Information Technology Systems and Security Professionals (ITSSP), a key security group under the Nigeria Computer Society (NCS), has called for stronger collaboration between government, industry, and academia to address Nigeria’s growing cybersecurity challenges.

Speaking at a press briefing held at the NCS National Office in Alausa, Ikeja, ITSSP President, Iyiola Ayoola, said the session on cybersecurity was organised to sensitise stakeholders ahead of the 2025 ITSSP Conference and Annual General Meeting (AGM), scheduled for November 6, 2025, at Martinos Hotel, Ikeja. 

The conference will be held under the theme “Navigating the Future of Cybersecurity: Insights on the New Cybercrime Act and Policy Challenges.”

Ayoola noted that the Federal Government’s commitment to cybersecurity is essential to national stability and development. He acknowledged the 2024 amendment to the Cybercrime Prohibition and Prevention Act as a step forward but stressed the need for clarity, collaboration, and technical capacity to make it effective.

The Federal Government of Nigeria recognises cybersecurity as a cornerstone of national development and security. However, with the rapid evolution of technology, increased sophistication of cybercriminals and emerging data privacy concerns, there is a compelling need to review, propagate and explain the existing cybercrime law and related policies,” he said.

The ITSSP president noted the need to protect critical national information infrastructures, strengthen penalties for cyber offences, and localise technology development to reduce overdependence on foreign systems.

What you don’t create, you don’t have,” Ayoola stated, stressing that Nigeria must begin developing its own cybersecurity infrastructure if it hopes to survive the high wave of digital threats.

He further warned that the lack of coordination among agencies, inadequate funding, and the exodus of skilled professionals are endangering Nigeria’s digital space.

Do we have enough expertise? Where are they? The few capable people we have are all going. Even banks have suffered from the loss of skilled cybersecurity managers,” he said.

Ayoola called for a national cyber coordination framework, greater private sector participation, and the inclusion of academia in capacity development. He also stressed the need for cyber ethics and public awareness campaigns, saying journalists and media organisations must help in educating citizens on online safety and digital responsibility.

There must be a cyber ethics and awareness campaign. Who will do this awareness campaign for us? It is our press people that will do it,” he said, adding that media practitioners should be empowered and protected under the new cyber laws.

While addressing provisions of the 2024 Cybercrime Act, Ayoola acknowledged the government’s intention to curb online abuse and misinformation but noted issues of potential infringements on free speech.

Some parts of the new law have raised concerns about free speech and citizens’ rights online. There must be a balance between freedom of expression and the implementation of cyber regulations,” he explained.

He noted that the law criminalises pornographic or knowingly false messages transmitted through computer networks, especially those capable of causing public disorder or threatening life, but questioned the absence of clear definitions for such offences.

There are things that are not clear to us. One of them is the exact definition and threshold for what constitutes false or misleading content under the law. What level of proof is required?” Ayoola asked.

He emphasised that the ITSSP will continue to advocate for fairness, transparency, and stakeholder consultation in the interpretation of the law.

Beyond security, the event also featured a robust discussion on cyber economics, with journalists and professionals calling for recognition of the economic opportunities within cybersecurity.

The government’s focus on cybersecurity should not overshadow the economic value within the space. There are volumes of digital transactions online, and protecting them is also protecting the cyber economy.”

In response, Ayoola and Rogba Adeoye, executive secretary of ITSSP, among other executives agreed that the cyber economy is largely untapped in Nigeria.

The banks are the ones getting the economic aspect of it. They make deductions from every online transaction, but those revenues are rarely reinvested into technological development,” Ayoola said, adding that a regulated policy framework could channel part of these earnings into national innovation funds.

Cybersecurity is not just a technological issue, it is a national security, economic and social imperative. Let us all work together to ensure that the nation’s digital future remains secure, resilient and prosperous.”

The ITSSP, established eight years ago as the cybersecurity arm of the Nigeria Computer Society, advocates for responsible digital governance, capacity building, and policy reforms to strengthen Nigeria’s cyber resilience.

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TikTok Nears U.S. Takeover as Trump, Xi Set to Finalise Deal https://techeconomy.ng/tiktok-us-takeover-trump-xi-deal/ https://techeconomy.ng/tiktok-us-takeover-trump-xi-deal/#comments Mon, 15 Sep 2025 18:00:42 +0000 https://techeconomy.ng/?p=167209 U.S. and Chinese officials have reached a preliminary framework to shift TikTok’s ownership to U.S. control, a development that could be confirmed during a Friday call between President Donald Trump and Chinese President Xi Jinping.

The agreement emerged after two days of intense negotiations in Madrid. U.S. Treasury Secretary Scott Bessent said the looming September 17 deadline, which could have forced TikTok to halt operations in the U.S., pushed China to consider a deal. 

They’re interested in Chinese characteristics of the app, which they think are soft power. We don’t care about Chinese characteristics. We care about national security,” Bessent told reporters.

This is the fourth round of high-stakes talks in four months aimed at resolving a string of trade disputes alongside the social media divestiture. Delegations, led by Bessent and Chinese Vice Premier He Lifeng, have met in multiple European cities since May, navigating a tense trade environment defined by tariff escalations and the halting of rare earth exports to the U.S.

U.S. Trade Representative Jamieson Greer described the TikTok agreement as a demonstration of good faith. “It’s no secret that there are serious issues on trade, economics, and national security between the United States and China. To be able to come, sit down, quickly identify the issues, narrow them down to a very granular spot, and be able to come to a conclusion, subject to the leaders’ approval, I mean, that is remarkable,” Greer said.

Bessent acknowledged that China made what he called “very aggressive asks” in trade and technology concessions in exchange for the divestiture. He stressed that national security would not be compromised for a social media platform.

The talks coincided with Washington urging allies to impose tariffs on Chinese imports over Beijing’s purchase of Russian oil, which China denounced as coercion. 

Separately, Beijing announced a preliminary probe into U.S. chipmaker Nvidia for alleged anti-competitive practices, widely interpreted as retaliation for U.S. restrictions on China’s semiconductor sector. Bessent called the timing “poor.”

TikTok’s parent company, ByteDance, has been under pressure since January, when the app faced a potential U.S. ban under the Protecting Americans from Foreign Adversary Controlled Applications Act. 

Trump extended the divestiture deadline multiple times. It’s not yet known if this latest announcement will satisfy the law or whether Congress will weigh in.

Trump took to Truth Social to signal optimism about the outcome. “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!”

Negotiators from both sides stopped short of disclosing whether ByteDance would transfer control of TikTok’s underlying technology. Chinese officials indicated that the deal could include licensing intellectual property, including the app’s algorithm, to a U.S. entity.

The Madrid talks are a critical juncture for U.S.-China relations. While TikTok dominates social media culture, the discussions are embedded within concerns over national security, trade, and technology access. 

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ALTON Warns of Imminent Telecom Shutdown as Diesel Blockade Threatens Over 16,000 Base Stations https://techeconomy.ng/alton-telecom-shutdown-diesel-blockade-nigeria/ https://techeconomy.ng/alton-telecom-shutdown-diesel-blockade-nigeria/#respond Thu, 07 Aug 2025 16:23:01 +0000 https://techeconomy.ng/?p=164608 Nigeria’s telecom network may soon suffer outages as over 16,000 base stations face imminent shutdown following a diesel supply blockade in Lagos, Kaduna, and Delta States, ALTON warns.

The disruption stems from an escalating conflict between two oil workers’ unions and a major telecom infrastructure provider.

Members of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) have blocked access to key diesel loading depots. 

This is preventing fuel distribution to telecom sites operated by IHS Towers, one of the largest providers of telecommunications infrastructure in the country.

At the heart of the dispute is an allegation of diesel misappropriation levelled by IHS against two companies affiliated with NOGASA. The issue is under investigation, yet in response, union members have halted diesel supply operations in the affected states, effectively putting a critical portion of Nigeria’s digital infrastructure at risk.

Engr. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), did not downplay the seriousness of the situation. 

In his words: “This action, reportedly stemming from allegations by IHS of diesel misappropriation against 2 member companies of NOGASA and which is being investigated by the requisite authorities, has resulted in a critical threat to the operation of some of the 16,000 telecommunications sites nationwide, servicing Mobile Network Operators.”

The telecom base stations under threat are responsible for powering mobile phone and internet services, bank transaction networks, hospital communication systems, emergency response lines, and vital national security platforms.

A failure at this scale would compromise not only public access to connectivity but also the digital backbone of Nigeria’s economy and security architecture.

It’s important to note that Nigeria’s telecom infrastructure relies heavily on diesel-powered generators, as grid electricity remains unreliable and insufficient. Some affected sites are reportedly now operating on backup reserves with little time left before complete outages begin.

ALTON stressed that while it does not mediate disputes between private companies and third-party service providers, it has a duty to protect national infrastructure.

These sites not only power mobile and internet services for millions of Nigerians, but also support essential services such as banking transactions, hospital communications, emergency response systems, and national security operations,” Adebayo stated.

More than just a commercial conflict, the issue now carries national security and legal implications. ALTON reminded the unions and all involved parties that telecommunications assets have been designated as Critical National Information Infrastructure under Nigerian law, a classification that makes any deliberate disruption a potential offence with serious consequences.

Calling for speedy intervention, ALTON urged the leadership of NUPENG and NOGASA to reverse the blockade and allow fuel distribution to resume. The association also appealed to the Office of the National Security Adviser (ONSA), the Nigerian Communications Commission (NCC), and other authorities to step in immediately.

We urge all parties involved to embrace constructive dialogue to resolve the matter, without further disruption to essential services. Disputes must be resolved within the framework of lawful contracts and applicable legal processes,” Adebayo added.

As we face the real possibility of a digital blackout, experts warn that any delay in restoring fuel supply could result in cascading failures across multiple sectors. 

ALTON has reiterated its focus on keeping Nigerians connected but warned that continued interference with diesel access will derail network stability and increase the economic challenges already felt across the country.

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Donald Trump Demands Resignation of Intel CEO Over Alleged China Ties https://techeconomy.ng/donald-trump-intel-ceo-resignation-china-ties/ https://techeconomy.ng/donald-trump-intel-ceo-resignation-china-ties/#respond Thu, 07 Aug 2025 13:59:32 +0000 https://techeconomy.ng/?p=164598 U.S. President Donald Trump has publicly called for the immediate resignation of Intel CEO, Lip-Bu Tan, pointing to alleged conflicts of interest tied to China. 

The accusation, which was posted Thursday on Trump’s social media platform, has left the tech and political sectors in shock, increasing evaluation on one of America’s most strategically important chipmakers.

The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!” Trump posted on Truth Social.

Trump offered no specific evidence to back his claim, but his statements come in the wake of some Republican issues on the company. 

On Wednesday, Senator Tom Cotton had written to Intel’s board demanding clarity on Tan’s personal and professional ties to Chinese entities. 

Cotton’s letter raised red flags about Tan’s leadership at Cadence Design Systems—where tools were reportedly sold to a Chinese military-linked university—and his subsequent investments in Chinese tech firms through his venture capital arm, Walden International.

A Reuters report detailed that Tan had channeled over $200 million into various Chinese companies, with several reportedly linked to the country’s military or national security infrastructure. Cotton has questioned whether such entanglements are compatible with Intel’s receipt of federal funds under the CHIPS and Science Act.

The new CEO of @intel reportedly has deep ties to the Chinese Communists. U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations. The board of @Intel owes Congress an explanation,” Cotton posted on X, attaching his formal letter.

Tan, who assumed the role of CEO in March 2025, has been steering Intel through a major overhaul in the face of stiff competition from Nvidia, AMD, and TSMC. 

His tenure has so far involved aggressive cost-cutting: thousands of job losses, cancelled factory expansions, and efforts to offload non-core business units. His stated aim is to restore Intel’s reputation as a leader in chip engineering, a position it has steadily lost over the last decade.

But these leadership decisions now risk being overshadowed by the political fallout. Intel’s strategic importance to U.S. national security is significant. It is the single largest beneficiary under the CHIPS Act, with $8.5 billion earmarked for new manufacturing facilities across Arizona, New Mexico, Ohio, and Oregon. 

The controversy around Tan’s alleged links to China could compromise the company’s ability to maintain bipartisan confidence and secure future federal support.

Intel has not yet responded to multiple requests for comment on the matter. Tan himself has remained silent as calls for transparency mount.

Meanwhile, investors are reacting. Intel’s stock fell nearly 5% in premarket trading following Trump’s post, reflecting growing anxiety over potential leadership instability and the political issues surrounding the company. 

With Washington increasingly wary of Beijing’s influence in the tech supply chain, the timing of these revelations, whether substantiated or not, puts Intel in an uncomfortable spotlight.

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Trump Delays TikTok Ban Again, Eyes China Deal https://techeconomy.ng/trump-delays-tiktok-ban-again-eyes-china-deal/ https://techeconomy.ng/trump-delays-tiktok-ban-again-eyes-china-deal/#comments Wed, 18 Jun 2025 09:58:47 +0000 https://techeconomy.ng/?p=161310 Donald Trump has decided to give ByteDance, Chinese parent company of TikTok, another 90 days to divest its U.S. operations, stretching the deadline yet again despite a binding law that mandates either a completed sale or a total ban.

It’s the third time the president has pushed the enforcement date, ignoring pressure from lawmakers and legal analysts who insist he lacks the authority to sidestep the law indefinitely. 

The Foreign Adversary Controlled Applications Act, passed in 2024 with bipartisan support, gave ByteDance until January 19, 2025, to either sell TikTok’s U.S. assets or shut down. The Supreme Court upheld the law earlier this year.

Trump, however, has repeatedly refused to act. First in January, then April, and now again in June, he’s granted delays, despite having signed the very law enforcing the sale. 

The latest extension moves the deadline to mid-September, with White House press secretary Karoline Leavitt confirming on Tuesday:

President Trump will sign an additional executive order this week to keep TikTok up and running.”

She added, “President Trump does not want TikTok to go dark. The administration will spend the next three months making sure the sale closes so that Americans can keep using TikTok with the assurance that their data is safe and secure.”

But that “assurance” seems tied to far more than just national security as Trump has made no secret of the app’s value to his political base. TikTok’s influence on young voters during the 2024 election helped energise an important demographic for his campaign. 

Speaking in May, he candidly admitted, “TikTok helped me with young voters.”

Earlier this week aboard Air Force One, he told reporters that he planned to extend the deadline again, “Probably, yeah. Probably have to get China approval but I think we’ll get it. I think President Xi will ultimately approve it.”

A deal to spin off TikTok into a U.S.-based firm, majority-owned by American investors, was reportedly nearing completion earlier this year. But Trump’s abrupt imposition of up to 145% tariffs on Chinese imports in March soured negotiations. China signalled it would block the sale in response.

Now, Trump appears to be using the TikTok ban issue as leverage in ongoing trade discussions. He has implied he might reduce tariffs if Beijing agrees to approve the divestment. 

That makes TikTok not just a social media platform under investigation, but a bargaining chip in one of the world’s most volatile diplomatic relationships.

Democratic lawmakers argue Trump is undermining national security by stalling. Some insist the current offer on the table doesn’t meet the legal standard, and question whether Trump’s personal and political interests are clouding his judgment.

The administration, meanwhile, is caught between conflicting aims; appease China just enough to get the sale done, but not so much that it appears weak. All while keeping 170 million U.S. TikTok users happy.

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OpenAI Secures $200 Million Pentagon Deal to Build AI for Warfare, National Security https://techeconomy.ng/openai-secures-200-million-pentagon-deal/ https://techeconomy.ng/openai-secures-200-million-pentagon-deal/#respond Tue, 17 Jun 2025 09:19:06 +0000 https://techeconomy.ng/?p=161185 The U.S. Department of Defense has signed a $200 million contract with OpenAI to build cutting-edge artificial intelligence tools specifically for military and national security operations.

According to the Pentagon, the contract mandates the development of “prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains.” 

The project will largely be carried out in and around Washington, D.C., and is expected to run through July 2026.

This deal is OpenAI’s most consequential entry yet into the world of defence technology. With cases around global military AI development, particularly between the U.S., China, and Russia, Washington appears determined to push ahead with strategic AI applications, even as regulatory issues around commercial AI increases.

Again, this contract falls outside the purview of recent guidelines issued by the White House Office of Management and Budget (OMB), which had in April 2025 instructed federal agencies to promote a “competitive American AI marketplace.” 

That directive, however, exempted national security and defence initiatives, allowing the Pentagon to move quickly without standard civilian oversight.

While the Pentagon has not publicly disclosed the specifics of the technology under development, “frontier AI” in this context is widely understood to refer to advanced models capable of autonomous analysis, rapid threat identification, predictive decision-making, and secure battlefield communications.

This is a big one for OpenAI. Founded with the vision of building general-purpose AI that benefits humanity, the company is now committing resources to meet military-grade demands. 

The result for AI ethics and transparency in defence applications is not yet known, especially as these technologies begin to influence sensitive global security infrastructure.

Just last week, OpenAI revealed that its annualised revenue run rate had surged to $10 billion as of June 2025, nearly doubling from $5.5 billion just six months earlier. 

The company is reportedly on pace to generate $12.7 billion by the end of the year, excluding its licensing revenue from Microsoft and major one-off deals.

Earlier in March, OpenAI also began raising up to $40 billion in fresh capital, in a funding round led by Japan’s SoftBank. That round, valuing the firm at $300 billion, ranks among the largest private tech raises in history. 

As of March 2025, the company claimed 500 million weekly active users, showing an astonishing scale of global engagement.

Now, with military-grade contracts, OpenAI’s drive is moving in real-time, and so are the debates about who controls the future of artificial intelligence, and to what ends.

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