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<\/p>\nLawmakers in US Congress would need to sign off the final deal<\/p>\n
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Oracle will assume oversight of a US version of TikTok’s algorithm under a new arrangement designed by President Donald Trump to prevent the app’s ban in the US.<\/p>\n
White House officials said Monday the agreement would ensure TikTok’s American business separates from its Beijing-based parent company, ByteDance, and that its recommendation software is rebuilt under US ownership.<\/p>\n
As part of the plan, American investors will lease a version of ByteDance’s algorithm, which will then be retrained using US user data.<\/p>\n
Oracle will provide cloud storage, security, and technical monitoring to ensure the system is inaccessible from China.<\/p>\n
“Oracle will operate in partnership with the US government to ensure safety and data security across the entire TikTok platform – from source code review, to algorithm retraining, to application development and deployment,” a White House official said.<\/p>\n
Trump is expected to issue an executive order later this week providing a 120-day window to finalise the deal. That period will cover investor arrangements, board structure, and regulatory approvals from both Washington and Beijing.<\/p>\n
The official added that TikTok’s new US entity would operate its algorithm independently, with no sharing of US data outside the country.<\/p>\n
ByteDance, while still holding a minority stake, would lose access to both user data and algorithmic control.<\/p>\n
The deal comes after months of political wrangling over TikTok’s future in the US<\/a>.<\/p>\n A federal law requires ByteDance to divest its American operations or face a nationwide ban, amid bipartisan concerns in Congress that the platform’s content-recommendation system could pose national security risks.<\/p>\n Trump has repeatedly delayed the ban, most recently pushing the deadline to 16th December.<\/p>\n Under the expected terms, a US consortium will own 80% of TikTok’s American business, leaving ByteDance with less than 20%.<\/p>\n Existing investors such as General Atlantic and Susquehanna will keep their stakes, while new backers are poised to join.<\/p>\n Media mogul Rupert Murdoch, through Fox Corp, and computer industry pioneer Michael Dell are among those preparing to invest, people familiar with the matter told<\/a> the Financial Times.<\/p>\n TikTok’s US board will consist of seven directors, six of them American, with ByteDance appointing only one.<\/p>\n Despite earlier speculation, the federal government will not take an equity stake or hold a so-called “golden share,” which would give Trump veto power over key company decisions.<\/p>\n The deal also formalises Oracle’s role as TikTok’s cloud provider, building on an earlier arrangement that already saw the company store data from the app’s roughly 170 million US users.<\/p>\n