WASHINGTON, D.C. — The Trump administration has announced a significant step in addressing the national security concerns surrounding TikTok, with tech giant Oracle selected to oversee the platform’s algorithm and security infrastructure in the U.S. This decision comes as part of a larger framework agreement aimed at resolving the longstanding issues over TikTok’s ownership, which has been under scrutiny due to its ties to China.
What Happened
As part of the deal, Oracle will lead a joint venture with investment firm Silver Lake Partners and potentially media mogul Rupert Murdoch and personal computer pioneer Michael Dell. The U.S. government will not have a stake in the venture or a seat on its board, according to a senior White House official. However, the framework still requires approval from China and regulatory bodies before it can be finalized.
President Trump is expected to sign an executive order later this week that will officially declare that the terms of the deal meet the security concerns set forth by U.S. law. The move follows months of back-and-forth between the Trump administration and China over TikTok’s ownership, amid fears that the platform’s algorithm could be manipulated by the Chinese government for political purposes.
Key Details of the Deal
The proposed joint venture will receive a licensed copy of TikTok’s recommendation algorithm, which is a central part of the platform’s success. Oracle will oversee the security of U.S. data flowing through the service and monitor how the algorithm operates. However, the Chinese government has previously insisted that its algorithm remain under Chinese control by law. Under the terms of this agreement, the algorithm will be “retrained” with U.S. data to ensure it aligns with security expectations, but it’s still unclear whether this will significantly alter the user experience.
White House Press Secretary Karoline Leavitt confirmed that the change in control would not alter the user experience, stating that TikTok users in the U.S. would still be able to view content from users in other countries.
What This Means for TikTok Users
While U.S. users may not immediately notice any major changes to the platform, the shift in control raises questions about how the algorithm may evolve under new oversight. Jasmine Enberg, an analyst at eMarketer, pointed out that any noticeable changes could alienate TikTok’s large audience, especially since the platform’s success is tied to its culture as much as its technology.
The deal also marks a significant shift in the business and political landscape, with major investors such as Larry Ellison (Oracle), Michael Dell, and Rupert Murdoch potentially gaining influence over one of the world’s most popular social media platforms.
What Happens Next
ByteDance, TikTok’s parent company, is expected to maintain a minority stake (around 20%) in the new U.S. joint venture, with the board controlled by the U.S. investors. ByteDance will have one representative on the board, but that individual will be excluded from the security committee.
The framework deal is still in the process of being finalized, with China needing to sign off on the proposal, and the deal will also require regulatory approval. If successful, Oracle and Silver Lake will play a major role in TikTok’s future in the U.S.
Closing line
This story may be updated with more information as the deal progresses and regulatory approvals are obtained.
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