Oracle to oversee US TikTok algorithm under Trump administration deal

The Trump administration has reached a framework deal to allow TikTok to remain operational in the United States by placing its algorithm under US management, sources said.

Oracle is slated to oversee, monitor, and secure the algorithm and associated data, as the government seeks to address ongoing national security concerns tied to Chinese ownership.

Under the proposal, TikTok would be reorganized into a US-based entity, with Oracle and a consortium of American investors holding a majority stake. ByteDance, TikTok’s Chinese parent, would retain less than 20% ownership under the licensing agreement for the US algorithm.

The agreement includes retraining the licensed copy of the recommendation algorithm using US user data to ensure it behaves in accordance with US security standards. Oracle will also review and monitor US user data flows through the platform.

According to senior US officials, the joint venture will have board control by American investors. The US government will not take a board seat nor hold equity in the new entity, according to these sources.

The deal is intended to comply with a 2024 US law that required ByteDance divest its US operations or face a ban, by creating an American operational control for algorithm and data oversight. Regulation and formal closing of the transaction will require Chinese approval as well as regulatory signoffs in the US.

White House officials say that details like which investors will be involved (Oracle, Silver Lake, possibly including others) and how the oversight board will be structured are still being finalized.