TikTok Deal Nearer Finish Line After Trump, Xi Call | Bloomberg Tech 9/19/2025

Key Concepts

• TikTok Deal: Potential sale of TikTok's U.S. operations involving Oracle and U.S. investors.
• U.S.-China Trade Relations: Ongoing trade negotiations, export controls, tariffs, and geopolitical tensions.
• NVIDIA and AI Chips: U.S. export controls on AI chips to China and competition from Huawei.
• FCC and Media Regulation: The FCC's role in regulating broadcasters, First Amendment rights, and potential political influence.
• AI Infrastructure: Demand for GPUs, data centers, and the role of companies like CoreWeave.
• Geopolitical Risk: The impact of geopolitical events on market volatility and investment decisions.

TikTok Deal and U.S.-China Relations

• Trump-Xi Call: A phone call between President Trump and President Xi Jinping to discuss a framework for TikTok's U.S. operations and broader trade issues.
• China's Stance: China is signaling that it wants companies to find a resolution to the TikTok issue, but it is not giving a full "thumbs-up" to the proposed deal. Xi Jinping wants the U.S. to avoid undermining recent talks and refrain from taking unilateral trade measures.
• Oracle's Role: Oracle is potentially part of a coalition to buy TikTok's U.S. unit, but the details are unclear. Oracle's stock price fluctuated based on the news from the Chinese state press.
• Algorithm Control: China wants ByteDance to retain control of the TikTok algorithm and does not want to see it transferred to U.S. owners.
• Political Win: Both Trump and Xi Jinping need to secure a political win for their respective constituents.
• Export Controls: China wants export controls lifted, particularly on NVIDIA chips.
• Trump's Reaction: President Trump posted on Truth Social that he had a productive call with President Xi and that they made progress towards the approval of a TikTok deal. He also agreed to meet with President Xi at the APEC summit.

NVIDIA and AI Chips

• Export Controls: The U.S. has imposed export controls on AI chips to China, which has been a sticking point in trade negotiations.
• Jensen Huang's Advocacy: NVIDIA CEO Jensen Huang has advocated for a relaxation of the U.S. export controls.
• Huawei's Competition: Huawei is developing its AI chips and finding ways to compete with NVIDIA.
• Downgraded Chips: President Trump has signaled his openness to the idea of selling a downgraded version of NVIDIA's AI chips in China.

FCC and Media Regulation

• Jimmy Kimmel Controversy: Jimmy Kimmel's show was put on indefinite hold by Disney following reactions to comments he made accusing Republicans of trying to gain political points from the killing of Charlie Kirk.
• Anna Gomez's Statement: FCC Commissioner Anna Gomez issued a strongly worded statement criticizing ABC's decision to suspend Jimmy Kimmel's show, calling it a "shameful show of cowardly corporate capitulation" that puts the foundation of the First Amendment in danger.
• FCC's Authority: The FCC does not have the authority to take action against broadcasters because of their content, except in limited cases such as protecting children's programming.
• Political Pressure: The Trump administration is using whatever levers of power it has to bring broadcasters to heel and influence their content.
• License Revocation: Revocations of licenses are extremely rare and require a very high standard. There is no basis for revoking any licenses because of the Jimmy Kimmel content or because of normal editorial decisions from a broadcaster.
• Complaints Filed: A partisan legal group has been filing complaints against media companies, including complaints against 60 Minutes, NBC, and Saturday Night Live.
• Deals and M&A: The administration will use deals to pressure companies, whether it is to settle lawsuits or give up their rights as organizations.

AI Infrastructure

• Data Center Demand: There is massive demand for AI data centers and GPUs.
• CoreWeave: CoreWeave is a company that provides AI infrastructure, including GPU clusters.
• Magnetar Capital: Magnetar Capital is an investment firm that invests in AI infrastructure and other industries.
• Skill, Scale, and Scarcity: AI infrastructure requires skill, scale, and scarcity.
• Customer Mix: The customer mix is important for lowering the cost of finance.

Apple's New iPhone Designs

• iPhone 17 Launch: Apple rolled out new iPhone designs, including the iPhone 17 Pro and Pro Max.
• Customer Demand: Most customers were looking for the iPhone 17 Pro or Pro Max.
• Supply Chain: The supply chain has not experienced many shocks in terms of delays or shipment times.
• Trump's Post: President Trump posted on Truth Social that he had a productive call with President Xi and that they made progress towards the approval of a TikTok deal. He also agreed to meet with President Xi at the APEC summit.

Geopolitical Risk

• Market Volatility: Geopolitics is entering and becoming another source of volatility for the markets.
• AI and Geopolitics: The whole story around semiconductors is intertwined with geopolitics.
• Bifurcated World: There is a consideration of what demand looks like if the U.S. and China are not necessarily buying from each other as much as they are jockeying with each other when it comes to AI.

Conclusion

The broadcast highlights the complex interplay between technology, geopolitics, and market dynamics. The potential TikTok deal, U.S.-China trade tensions, and the FCC's role in media regulation are all intertwined and have significant implications for investors and the broader economy. The demand for AI infrastructure is driving growth in the data center market, but geopolitical risks and regulatory pressures add uncertainty. The key takeaway is that investors need to be aware of these factors and consider them when making investment decisions.