Vinod Khosla calls on Senate to pass bill | Wilnesh News

Investors Vinod Khosla and Palantir Written by consultant Jacob Helberg open envelope Senators were called on Thursday to pass a bill to force the spinoff of ByteDance-owned TikTok in the United States

Describing the social media platform as a “weapon of war,” Helberg and Khosla compared the bill to decades of restrictions on foreign ownership of U.S. media organizations.

“Would you let North Korea or Iran have a broadcast channel that 67 percent of teenagers spend nearly two hours a day watching?” the pair wrote.

Some critics have likened the ban to act of disenfranchisement, given that it singled out a company. Helberg told CNBC that the comparison doesn’t apply.

“We have a long tradition in American policymaking — when national security is at stake, sometimes we do target individual companies,” Helberg said. The bill, which passed the House overwhelmingly in March, requires Byte to TikTok must either find a buyer for TikTok or face a ban in the U.S.

Bitbeat isn’t sitting idly by, though. The company mobilized its user base against the House bill, urging millions of users to call their congressional representatives and express their opposition. In-app notifications prompted a flood of calls that overwhelmed some congressional offices.

Helberg said the effort is a prime example of the risks TikTok poses. “This is a live demonstration of exactly the concerns we’ve been trying to highlight to our elected officials,” he told CNBC. “All of these concerns that were previously only theoretical are highlighted in full color for everyone to see.”

Khosla is the founder of Khosla Ventures and co-founder of Sun Microsystems. Helberg is a senior advisor to Palantir, an artificial intelligence company that does a wide range of government contract work, including with the U.S. Department of Defense.

The two are also deeply involved in the Hill and Valley Forum, a working group that first convened in 2023 to combat the influence of the Chinese government and TikTok in the United States. Hill and Valley plans to reconvene in May.

TikTok CEO Shou Zi Chew has also been lobbying Washington lawmakers to oppose the ban and met with Pennsylvania Democratic Senator John Fetterman in March.

While the letter is addressed to all senators, Helberg said he was particularly hopeful that Sens. Chuck Schumer, D-N.Y., and Maria Cantwell, D-Wash., would Cantwell) can notice. Schumer is Senate Majority Leader and Cantwell is chairman of the Senate Commerce Committee.

But TikTok appears to be getting clear support from an unexpected source: former President Donald Trump. One week after Trump meets with top Republican donors and ByteDance investors Jeff Yasthe former president said he opposed the TikTok ban, saying it would Yuanowns Instagram.

Helberg said he didn’t think Trump was completely opposed to Khosla and his efforts. “If you look at his comments, you will see that he has expressed very strong concerns about bias and censorship of conservative voices online,” Helberg told CNBC. Trump is the 2024 Republican presidential candidate.

Still, Trump’s comments, combined with opposition from China’s Foreign Ministry, raised questions about whether a divestment would be feasible. China has expressed complete opposition to the sale of TikTok, which requires a government export license. The backlash, Khosla and Helberg wrote, “tells you what you need to know: TikTok is a ‘key political asset,’ not a commercial enterprise.”

Top investors including former Treasury Secretary Steven Mnuchin and former Activision Blizzard CEO Bobby Kotick are eyeing the app, which The price could be tens of billions of dollars.

Asked how likely a tie between divestitures and an injunction was, Helberg demurred.

“If the Chinese Communist Party acts in good faith and fulfills its commitments, the divestment will proceed in an orderly manner,” he said. “There are many people in the United States who are willing to buy.”

TikTok did not immediately respond to a request for comment.

Watch: Former Treasury Secretary Mnuchin says he is forming investor group to acquire TikTok