The decision, which came in a unanimous 9-0 vote, was made due to issues about possible data security risks caused by the app’s Chinese ownership. 

The ban will affect over 170 million American users who rely on TikTok for entertainment, community engagement, and business purposes.

In a statement following the ruling, the White House noted the need for the platform to operate under ownership that resolves national security issues. 

Outgoing President Joe Biden has confirmed he will not intervene before his term ends, leaving the decision to enforce or suspend the ban to President-elect Donald Trump, who assumes office on Monday.

TikTok has reportedly prepared to comply with the ruling by shutting down its operations in the United States. Users attempting to access the app after Sunday are expected to see a notification redirecting them to a website providing information about the ban. 

At a recent court hearing, TikTok’s legal team revealed that the platform would “go dark” if the ban comes into effect.

While everyone is uncertain about Trump’s next move, he has stated his intention to review the situation before making a decision. Despite being an avid TikTok user with over 14.8 million followers, Trump’s options are limited, as he cannot overturn the court’s ruling but may delay enforcement temporarily.

The ban, rooted in bipartisan legislation signed into law last April, prohibits US companies from hosting TikTok on app stores or providing essential services to maintain the platform. 

However, reports reveal that it infringes on free speech rights. TikTok maintains that the app does not pose a security threat and has refused to sell to an American firm.

With the deadline approaching, many US TikTok users are exploring alternatives. Some are migrating to platforms like Xiaohongshu, a Chinese app gaining popularity, while others gravitate towards established options such as Instagram Reels and YouTube Shorts.

The situation remains fluid, with questions over whether the ban will result in a total shutdown or a phased decline as updates cease and technical issues grow. For now, millions of users face the abrupt reality of losing one of the most popular social media platforms in the country.

This proposal comes ahead of the January 19 deadline, after which the platform faces a possible ban under legislation signed by President Joe Biden in April.

McCourt, through his organisation Project Liberty, spearheaded the move alongside a coalition of partners under “The People’s Bid”. 

The consortium has not disclosed the financial details of the proposal but claims to have secured the backing of well-known private equity funds, family offices, and high-net-worth individuals. They have also secured debt financing commitments from a leading US bank to support the transaction.

In a statement, McCourt noted the importance of preserving TikTok’s operations in the US while ensuring data privacy and user control. “By keeping the platform alive without relying on the current TikTok algorithm and avoiding a ban, millions of Americans can continue to enjoy the platform. We look forward to working with ByteDance, President-elect Trump, and the incoming administration to get this deal done,” he said.

The proposal includes plans to migrate TikTok’s 170 million US users to an American-built technological framework, which the consortium believes will prioritise data security and minimise disruption to users. 

Kevin O’Leary, an investor and “Shark Tank” star who recently joined the effort, said: “This is the bid that can save TikTok. Project Liberty has brought together the right people, the right vision, and the right technology to avoid a ban. It is a win for all Americans,” O’Leary stated.

The federal law mandating ByteDance to sell TikTok’s US assets or face a ban has prompted legal and political opinions. Former President Donald Trump’s administration had previously sought to ban TikTok over national security issues, and while Trump’s current stand favours resolving the matter diplomatically, the legal challenges persist.

A recent decision by the US Court of Appeals upheld the potential ban, and ByteDance continues to argue that the legislation infringes on First Amendment rights.

Tomicah Tillemann, president of Project Liberty, spoke on the vision of the bid, describing it as a solution to preserve TikTok’s cultural and economic contributions while meeting national security requirements.

“We respect ByteDance’s position to explore legal options, but we believe our bid offers a fair path forward that compensates its owners and ensures TikTok’s continued success in the United States,” he said.

This funding, announced by the Department of Commerce, will support Intel’s manufacturing projects in Arizona, New Mexico, Ohio, and Oregon, to revitalise the American semiconductor industry under the CHIPS and Science Act of 2022.

The CHIPS Act, a signature initiative of President Joe Biden’s administration, allocates $52.7 billion to strengthen the domestic chipmaking sector. Of this, $39 billion is earmarked for semiconductor production and $11 billion for research and development. 

Intel’s subsidy is the largest awarded to date under the programme, as the government seeks to reduce reliance on foreign supply chains and address vulnerabilities exposed during the pandemic.

Intel, which has already achieved several project milestones, is expected to receive at least $1 billion of the subsidy by the end of 2024. 

Commerce Secretary Gina Raimondo spoke on the impact of this investment, stating that it ensures “American-designed chips are manufactured and packaged by American workers for the first time in years.”

Scaling Domestic Capacity Amid Challenges

Intel’s funding will help in boosting the U.S. semiconductor space. The company has committed to an expansive $100 billion domestic manufacturing initiative across four states, which includes constructing new facilities and upgrading existing ones. 

However, the grant amount was revised from an earlier projection of $8.5 billion, following Intel’s separate $3 billion contract with the Department of Defense for producing advanced semiconductors under a national security programme. 

This adjustment was made without compromising the company’s vision or its projects’ timelines.

Nevertheless, the chipmaker had declining profit margins and workforce reductions have followed years of aggressive investments led by CEO Pat Gelsinger. 

But Gelsinger noted the importance of bipartisan support for restoring U.S. technology leadership, calling it “critical to the nation’s economic growth and security.”

Intel’s evolving business strategy includes transitioning to a “foundry” model, where it produces chips designed by external firms. This change has necessitated significant capacity-building, with major investments in new fabrication plants, particularly in Ohio and Arizona. 

Yet, global market challenges have delayed some projects, including those in Germany and Poland, reflecting the complex dynamics of the semiconductor industry.

Safeguards and Incentives

The Commerce Department has introduced measures to ensure accountability and protect taxpayer funds. Intel’s award includes restrictions on stock buybacks for five years and provisions for sharing excess profits. 

Again, the company opted against an $11 billion government loan initially offered, pointing to unfavourable terms for its shareholders.

Beyond direct subsidies, Intel stands to benefit from a 25% investment tax credit on qualified expenditures exceeding $100 billion. These incentives, coupled with strategic partnerships, such as its agreement with Tower Semiconductor, allow the company to strengthen its domestic and global footprint.

The U.S. government has prioritised semiconductor production as a cornerstone of its industrial and economic strategy. The CHIPS Act is part of a goal to reshore manufacturing, create high-paying jobs, and enhance national security. 

White House Deputy Chief of Staff Natalie Quillian described the Intel subsidy as an essential step in implementing this vision, reiterating its role in delivering tangible benefits to the American people.