Oracle plans to recreate and secure a new U.S. version of TikTok’s algorithm as part of a deal to acquire the platform’s U.S. operations. The agreement aims to address concerns over data privacy and security by ensuring Oracle’s involvement in managing the algorithm and user data, potentially allowing TikTok to operate independently within the U.S. under new oversight.
Oracle to Safeguard App’s Algorithm in Trump-Backed Agreement
A White House official announced that Oracle will develop and manage a new version of TikTok’s algorithm, serving as a security intermediary. Under this deal, TikTok’s US owners will lease a copy of the algorithm from Bytedance, with Oracle acting as the gatekeeper to ensure continued monitoring and operation. Data related to US users will be stored securely in the cloud, with Bytedance excluded from accessing such information, addressing longstanding concerns over data security. However, it remains uncertain whether this arrangement will meet the requirements of a recent U.S. national security law, though the White House hopes it will. President Trump is expected to sign an executive order later this week endorsing the deal. The structure of the agreement involves Bytedance retaining less than a 20% stake, with most of the ownership and control shifting to US investors like Oracle, which will hold a majority of the board seats, alongside other American entities, leaving only one seat to a Bytedance representative.
This development occurs amid ongoing trade negotiations with China, with analysts suggesting the TikTok deal may help facilitate a face-to-face meeting between President Trump and Chinese President Xi Jinping next month. Nonetheless, it does not mark the resolution of broader trade disputes, as officials highlight that the deal is more of a tactical step rather than a comprehensive agreement. The situation remains complex, with the deal representing a strategic move within the larger US-China trade tensions, and the relationship between the nations continuing to influence ongoing negotiations and policies.
In a significant development surrounding TikTok’s operations in the United States, Oracle has been chosen to secure the popular app’s algorithm as part of a deal backed by former President Donald Trump. The agreement aims to address concerns over national security and data privacy, with Oracle taking on a central role in managing TikTok’s US user data. This move is seen as a way to prevent the Chinese parent company, ByteDance, from exerting undue influence over American users’ information.
The deal stipulates that Oracle will host TikTok’s American data on its servers and will be responsible for safeguarding user privacy. Additionally, Oracle is expected to gain access to TikTok’s proprietary algorithms, ensuring that US authorities can monitor content and prevent potential security threats. The arrangement seeks to balance innovation with security, allowing TikTok to continue operating legally in the US.
This agreement marks a notable shift in the ongoing efforts to regulate Chinese technology companies in the US. While critics worry about increased corporate surveillance, supporters believe it helps protect national interests without banning the app outright. The deal signals a cautious step toward resolving tensions between the US and Chinese tech firms over data security and sovereignty.
