Oracle Corp. will manage data security and oversee algorithmic changes for TikTok as part of a new agreement designed to prevent the social media platform’s ban in the U.S., a senior White House official announced.
Under the arrangement, as first reported by the New York Times on Monday, TikTok’s recommendation algorithm — the technology that drives the app’s short-video feed — will be licensed from China to an American investor group responsible for U.S. operations. The algorithm copy will enable continued service while addressing national security concerns that prompted legislative action against the Chinese-owned platform.
The deal includes financial backing from Oracle, which will take an investment stake in the restructured American TikTok entity, and private equity firm Silver Lake, according to the report. American companies will own approximately 80% of TikTok’s U.S. operations, while ByteDance, the app’s Chinese parent company, and other Chinese investors will retain less than 20% of the platform.
The agreement represents a compromise solution that allows TikTok to continue operating in the U.S. market while addressing lawmakers’ concerns about Chinese access to American user data and potential manipulation of the platform’s content recommendations. Oracle’s role as security overseer will include monitoring any modifications to the recommendation technology that determines which videos users see on their feeds.
President Trump is expected to sign off on the deal on Thursday, according to the White House.
TikTok, which boasts more than 180 million monthly active users in the U.S., faced an imminent ban under legislation requiring its Chinese parent company to divest U.S. operations or cease American operations entirely.
The TikTok algorithm will be secured within the United States and placed beyond the reach of ByteDance, according to a White House official. The U.S.-operated version of TikTok plans to retrain its algorithmic copy using American user data, with China losing access to that information, officials confirmed.
The restructuring aims to satisfy requirements under federal legislation that would have prohibited TikTok’s U.S. operations unless ByteDance surrendered control of the platform. The law was crafted to address national security risks stemming from concerns that Chinese ownership could provide Beijing with avenues for propaganda distribution or collection of sensitive American user information.
Control over TikTok’s recommendation algorithm has become the central battleground in negotiations over the app’s Chinese connections. Chinese regulations mandate that such algorithms remain under Beijing’s authority, creating a direct conflict with American legal requirements. The jurisdictional clash over algorithmic control highlights the broader geopolitical tensions surrounding technology transfer and data sovereignty as both nations assert competing claims over the platform’s core technology.
The transaction remains in development, with officials indicating that formal documentation has yet to be completed. To accommodate the lengthy negotiation process, the president announced Monday that he would grant an additional 120-day extension to the enforcement deadline, providing parties with sufficient time to finalize the complex restructuring.
