President Donald Trump signed an executive order on Monday instructing the U.S. government to initiate the development of a state-owned investment fund, which he suggested could be used to generate profits from TikTok if he succeeds in securing an American buyer, reports AP.
On his first day in office, Trump issued an order granting TikTok until early April to find an approved buyer or partner, while expressing his intent for the U.S. to acquire a 50% stake in the widely popular social media platform. Speaking from the Oval Office on Monday, he pointed to TikTok—currently owned by China-based ByteDance—as a potential asset for the proposed U.S. sovereign wealth fund.
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“We could place that in the sovereign wealth fund—whatever we generate—or establish a partnership with highly affluent investors. There are numerous possibilities,” Trump stated regarding TikTok. “But TikTok is an example. There are plenty of other assets we could incorporate into the fund.”
Sovereign wealth funds typically invest in stocks, bonds, and real estate, often financed by budgetary surpluses—something the U.S. currently lacks.
Trump observed that many other countries operate such funds and predicted that the U.S. could eventually surpass the size of Saudi Arabia’s sovereign wealth fund. “Eventually, we’ll surpass it,” he asserted.
Globally, more than 90 sovereign wealth funds collectively manage assets exceeding $8 trillion, according to the International Forum of Sovereign Wealth Funds, a London-based organisation comprising around 50 such entities.
Within the U.S., over 20 sovereign wealth funds operate at the state level, as noted by the Center for Global Development, a Washington-based nonpartisan think tank.
The largest state-level funds—located in Alaska, New Mexico, and Texas—are sustained by revenues from oil, gas, and mineral proceeds, with funds allocated to in-state programmes, including education. While these funds are state-owned, they generally function as independent entities with dedicated investment strategies and personnel, according to the think tank.
Trump has tasked Treasury Secretary Scott Bessent and Howard Lutnick, his nominee for commerce secretary, with spearheading the initiative to establish the fund, a process that will likely require congressional approval. The executive order mandates that a detailed plan—including recommendations for investment strategies and governance structure—be presented to Trump within 90 days.
During his tenure, former President Joe Biden’s administration explored the concept of a sovereign wealth fund for national security investments, but the idea was not pursued further before he left office last month.
Bessent stated that the administration aims to launch the fund within 12 months, while Lutnick suggested that another potential use for the fund could be government-held, profit-generating stakes in vaccine manufacturers.
“The immense scale of the U.S. government and its economic dealings should yield benefits for American citizens,” Lutnick remarked.
Under a federal law enacted in April with bipartisan support and signed by Biden, TikTok was slated to be banned in the U.S. last month unless ByteDance divested its ownership. In response, both the company and some users took legal action against the statute, which the Supreme Court ultimately upheld.
Upon assuming office, Trump—who had attempted to ban TikTok during his first term—directed the Justice Department to delay enforcement of the law for 75 days. The extension has provided ByteDance with additional time to negotiate a deal with U.S. authorities.
Several investors, including billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin, have publicly expressed interest in acquiring TikTok’s U.S. operations. Trump has indicated that “many people” have also approached him privately regarding the matter. Last week, he noted that Microsoft was among the U.S. companies considering the purchase.
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Last month, San Francisco-based artificial intelligence startup Perplexity AI submitted a proposal to ByteDance that would allow the U.S. government to own up to 50% of a new entity merging TikTok’s U.S. platform with Perplexity’s business, according to a source familiar with the discussions. If implemented, the proposal would grant the U.S. government a substantial stake in the entity once it conducts an initial public offering of at least $300 billion.