Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:00.070
tick tock reaching a deal to keep operating in the united states that's going to a memo from the company 's CEO tick tocks US algorithm is going to be retrained on american user data joining us right now to discuss this clinton founder and CEO of intelligent alpha good morning
Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:13.910
to you we've been waiting for this moment for quite some time i think the big questions around this is how is this fundamentally changed the dynamic is it actually more secure
Doug Clinton (Founder & CEO) 00:25.590
andrew it's been five years in the making almost hard to believe that we've finally gotten a deal here with tiktok to bring its algorithm to the US i think it does change security the concern has always been about where does the user data lie and wherever the user data lies
Doug Clinton (Founder & CEO) 00:43.190
gives a lot of control to the the domicile of the country that has that data the issue has been that china has had the data and whether you believe it or not they've been able to you know use that data to do things like track certain people in the US there have been many reports
Doug Clinton (Founder & CEO) 01:00.230
about that this deal will now bring all of that data to the US on oracle servers and so i think that alleviates a lot of the concerns about national security it's a great deal for national security i think it's also a really good deal for oracle particularly because they need
Doug Clinton (Founder & CEO) 01:15.470
something to change the narrative for them right now because it's been so negative around the AI trade do
Andrew Ross Sorkin (Co-anchor of Squawk Box) 01:21.070
we think it's going to change the dynamic for customers in terms of the product in terms of how this ultimately competes for example against facebook or against youtube or anybody else
Doug Clinton (Founder & CEO) 01:33.830
i don't think it changes anything there i think that we will continue to experience tick tock in the same way on the margin what we might see is this though there have been some suggestions that tick tock in the US shows different tick tock to users that might see content in
Doug Clinton (Founder & CEO) 01:50.430
china and so maybe on the margin we see content that is a little bit less you know controversial or maybe a little less political that's been some of the issues i think we've seen in the twenty twenty and twenty twenty four elections is how are we kind of seeing content from
Doug Clinton (Founder & CEO) 02:07.830
tick tock and what might china be doing to influence that content so those things might change in the margin but as it pertains to competing with the US kind of existing social landscape i don't think this will
Andrew Ross Sorkin (Co-anchor of Squawk Box) 02:19.190
change anything but let's go back to this this idea of i think what you're suggesting is that the chinese government or others are influencing the algorithm you believe that the these new US partners are going to re influence the the algorithm in a different way
Doug Clinton (Founder & CEO) 02:36.070
i think they will treat the algorithm much like facebook meta instagram sort of treat their algorithms youtube a similar example where i think they're going to focus very much in probably almost solely on what does the user want to see where are they going to stay most engaged
Doug Clinton (Founder & CEO) 02:53.350
versus again reports would suggest that maybe some of the algorithm was influenced when tiktok US was under chinese control in terms of showing a little bit more political content a little bit more
Andrew Ross Sorkin (Co-anchor of Squawk Box) 03:05.070
do you believe that that's that that's a real question do you do you believe that they were actually that the chinese ultimately were finagling with the algorithm or do you believe that there were just people unfortunately seeing some crazy stuff and that people more people
Andrew Ross Sorkin (Co-anchor of Squawk Box) 03:22.870
click on the crazy stuff and therefore they feed you more crazy stuff
Doug Clinton (Founder & CEO) 03:27.390
yeah andrew for me it's yes and yes actually i think both of those statements are true i think there was some influence from the chinese government it's such a powerful tool when you have a a social media application that influences two hundred million people in the US to not
Doug Clinton (Founder & CEO) 03:43.830
use that would almost be unbelievable given the political dynamics between our countries so i do think there was some influence but i also think what you said is also true on all of these social platforms there are extreme voices and some of those voices get attention extremity
Doug Clinton (Founder & CEO) 03:59.870
has always gotten attention on social media and so i think probably the balance between those two is that they they unfortunately work together in negative ways
Andrew Ross Sorkin (Co-anchor of Squawk Box) 04:10.400
i would say for the US think that there's any chance i mean here we are and and we're speculating that you know the chinese government is is organizing the algorithm do you think that there's any chance that once we get a hold of this if you will similarly to maybe the way elon
Andrew Ross Sorkin (Co-anchor of Squawk Box) 04:27.350
musk got a hold of twitter that we're going to find out actually how the algorithm was tuned in specific ways afterwards