Oracle to oversee TikTok algorithm in US deal
Tech giant Oracle is set to receive a copy of TikTok’s algorithm to manage the app’s operations for US users as part of an agreement addressing national security concerns.
The White House has confirmed that TikTok’s prized algorithm will be managed in the US under Oracle’s supervision as part of a deal to place the app’s US operations under majority American ownership. The agreement would transfer control of TikTok’s US business, along with a copy of the algorithm, to a new joint venture run by a board dominated by American investors.
The confirmed participants are Oracle and private equity firm Silver Lake, with Fox Corp. also expected to join the group. President Donald Trump has suggested that high-profile figures such as Michael Dell, Rupert, and Lachlan Murdoch could be involved, though CNN sources say that the Murdochs personally will not invest. ByteDance will keep a stake of less than 20% in the new US entity.
The deal follows years of negotiations over concerns that TikTok’s Chinese parent company could be pressured to manipulate the platform for political influence. By law, ByteDance is barred from cooperating on the algorithm with any new American owners. The code will be reviewed, retrained on US user data to address these fears, and monitored by Oracle to ensure its independence.
President Trump is expected to sign an executive order later this week certifying that the deal meets national security requirements under last year’s ‘ban-or-sale’ law. He will also extend the pause on enforcement by 120 days, giving Washington and Beijing time to finalise regulatory approvals. The White House said the deal could be signed within days, with completion likely early next year.
The arrangement deepens Oracle’s role in managing TikTok’s American presence, building on its existing partnership to store US user data. The development coincided with Oracle announcing a leadership shake-up, with CEO Safra Catz stepping down to become vice chair and two co-CEOs taking over. It is unclear if the timing is connected, but Catz, a close Trump ally, could take a role in the TikTok venture.
While financial details remain uncertain, the White House has ruled out taking a direct stake in the company. The deal, valued in the billions, would conclude a years-long effort to bring TikTok under US oversight and resolve national security concerns tied to its Chinese ownership.
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