Thursday brought a wave of developments across technology, politics, and markets, with TikTok’s US restructuring gaining presidential backing, Elon Musk’s xAI securing a federal access deal, and the Commerce Department revising second-quarter GDP upward.
At the same time, President Trump pledged tariff funds to aid farmers, while US equities closed lower on weakness in Oracle and Tesla.
Oracle, Silver Lake and MGX to be lead TikTok investors
Oracle, Silver Lake, and Abu Dhabi’s MGX are set to become the lead investors in TikTok’s US operations under a proposed restructuring aimed at addressing national security concerns.
According to CNBC, the three firms will control roughly 45% of the new entity, TikTok USA.
ByteDance, the Beijing-based parent company, will retain 19.9%, while the remaining 35% will go to existing and new investors.
President Donald Trump is expected to sign an executive order endorsing the deal, which follows bipartisan legislation requiring ByteDance to divest its US business or face a ban.
The legislation reflects ongoing concerns over TikTok’s algorithm and potential ties to Chinese authorities.
Oracle will oversee security operations under the plan, while the new entity’s board will have a majority of US members.
xAI to deploy Grok chatbot for US government use
Elon Musk’s AI company, xAI, has struck a new agreement with the US General Services Administration (GSA) to make its chatbot Grok available across federal agencies.
The deal, running through March 2027, will allow agencies to access Grok for $0.42 per organization—less than half the $1 annual rate charged by OpenAI for ChatGPT.
The agreement is part of the GSA’s “OneGov Strategy,” launched earlier this year to streamline technology procurement, standardize pricing, and avoid contract duplication.
The initiative aligns with President Trump’s “AI Action Plan,” which seeks to accelerate federal adoption of artificial intelligence and strengthen US leadership in the sector.
Other major AI providers, including Meta, Anthropic, Google, and OpenAI, have also signed government partnerships since the spring.
US GDP revised higher in Q2
The US economy expanded more strongly than previously estimated in the second quarter, according to revised data from the Commerce Department.
Gross domestic product grew at a 3.8% annualized rate from April through June, above the earlier 3.3% estimate and initial 3% reading.
The revision reflected lower imports and resilient consumer spending, offsetting earlier drags from inventory stockpiling tied to tariffs.
Following a first-quarter contraction, the figures suggest a stronger rebound than initially thought.
The Federal Reserve Bank of Atlanta projects continued momentum into the third quarter, with an official estimate due next month.
The release comes shortly after the Fed cut interest rates for the first time this year, citing labor market weakness.
Tariff revenues to aid US farmers
President Trump announced plans to use tariff revenues to provide relief to US farmers affected by trade policies.
Speaking at the White House, Trump said the aid would support farmers “for a little while” until the benefits of tariffs materialize.
Agriculture Secretary Brooke Rollins indicated the assistance could be distributed within weeks.
However, the move carries legal risk.
Lower courts have ruled some of the tariffs illegal, raising the possibility that the government may be required to repay tens of billions of dollars if the rulings are upheld.
Markets decline on Oracle, Tesla weakness
U.S. equities closed lower on Thursday as rising yields and weakness in technology weighed on sentiment.
The S&P 500 and Nasdaq Composite each fell 0.5%, while the Dow Jones Industrial Average shed 173 points, or 0.3%.
Oracle led the declines, sliding 5% and extending to a three-day losing streak amid investor concerns about the durability of the artificial intelligence trade.
Tesla also fell sharply, dropping 4% and contributing to the day’s tech-sector weakness.
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