Oracle Corp will recreate and oversee the US version of TikTok’s algorithm as part of a proposed sale of the Chinese-owned app to American investors, a White House official said Monday.
The arrangement is designed to address concerns from US lawmakers over data security and potential foreign influence.
According to the official, US-based TikTok owners would lease a copy of the recommendation software from ByteDance Ltd., TikTok’s Chinese parent, which Oracle would then retrain “from the ground up.”
All US user data would be stored in a secure Oracle-managed cloud with safeguards to prevent access by foreign entities, including ByteDance.
“Oracle, the US security partner, will operate, retrain, and continuously monitor the US algorithm to ensure content is free from improper manipulation or surveillance,” the official said in a Q&A accompanying the announcement.
Security and legal hurdles
TikTok’s algorithm has been central to divestiture negotiations.
US law mandates that ByteDance have no operational role in a new US version of the app, while Chinese law bars the export of sensitive technology.
It remains unclear whether US lawmakers will accept Oracle’s retraining plan or whether fully separating TikTok from ByteDance is technically achievable.
Under the proposed deal, Oracle would work with the US government on algorithm retraining, application development, and source code review.
ByteDance would have no access to US subscriber information and would not control the recommendation software.
The company would hold only one board seat on the new US-based TikTok, excluded from its security committee, while six seats would go to American directors.
Trump’s push for approval
President Donald Trump is preparing to approve the plan through an executive order this week.
Last Friday, Trump said he had a “great call” with Chinese President Xi Jinping and expressed confidence that the deal was moving forward.
“I had a great call with President Xi, and as you know, and approved the TikTok deal, and we’re in the process,” he told reporters.
“We look forward to getting that deal closed.”
The Chinese foreign ministry stopped short of explicitly endorsing the arrangement, stating it “respects the wishes of the company in question” and supports “productive commercial negotiations” that comply with Chinese law and consider the interests of both sides.
To allow more time for completion, Trump will extend ByteDance’s deadline to divest TikTok by 120 days.
The president had already granted a 90-day extension last week, pushing the cutoff to mid-December.
Under the agreement, US investors would hold a majority stake in the new TikTok venture, while ByteDance’s ownership would fall below 20 per cent to comply with US law, which requires it to relinquish control.
The White House said the new framework would give Oracle a central role in preventing manipulation and ensuring user protections, though the full scope of oversight remains to be determined.
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