President Donald Trump signed an executive order to establish a government-owned investment fund that could potentially capitalize on TikTok if an American buyer is secured. Trump aims for the U.S. to hold a 50% stake in TikTok, currently owned by China-based ByteDance, positioning it as a prime candidate for inclusion in the proposed sovereign wealth fund. Sovereign wealth funds, common globally but absent in the U.S. due to budgetary deficits, invest in various assets like stocks and real estate. Trump envisions the U.S. fund surpassing the size of Saudi Arabia’s, drawing on the success of existing state-level funds in Alaska, New Mexico, and Texas primarily funded by oil and gas revenues.

The plan, overseen by Treasury Secretary Scott Bessent and commerce secretary nominee Howard Lutnick, requires congressional approval and a detailed proposal within 90 days. While the Biden administration explored a similar fund for national security, Trump’s team aims to launch the fund within a year, potentially investing in vaccine manufacturers for public benefit. Notably, TikTok narrowly avoided a ban in the U.S. following legal challenges, with various investors expressing interest in acquiring the platform. A proposal by Perplexity AI suggests a partnership merging TikTok with their AI technology, allowing the U.S. government to hold a significant stake post-IPO. Trump’s directive to extend negotiations reflects a strategic shift in addressing national security concerns while exploring economic opportunities through innovative investment strategies.