US Deal: Oracle to License TikTok Algorithm
The Trump administration has laid out plans for Oracle to manage the recommendation algorithm for U.S. users of TikTok, under a framework agreed with ByteDance, TikTok’s Chinese parent company.
Oracle’s Role in Algorithm Oversight
Under the proposed deal, Oracle will receive a copy of TikTok’s recommendation algorithm. That copy will be retrained using U.S. user data, and Oracle will oversee its functioning to ensure compliance with national security and data protection standards.
Ownership and Investment Structure
The U.S. version of TikTok will be controlled mainly by American investors. Oracle and Silver Lake are confirmed as part of the investor group. Other potential investors include Rupert Murdoch, Michael Dell, and Larry Ellison. ByteDance will retain a minority stake of 20% or less in the new U.S. entity.
Regulatory Approval Pending
The joint venture will have a board majority made up of Americans, with oversight mechanisms to ensure no shared control of the algorithm with ByteDance. The deal still requires China’s approval along with U.S. regulatory clearance. The Trump administration is expected to issue an executive order confirming that the framework meets national security requirements.
