ORACLE TO MANAGE TIKTOK ALGORITHM FOR U.S. USERS UNDER TRUMP ADMINISTRATION DEAL

TikTok’s U.S. future is taking a new turn after the Trump administration reached an agreement that will see Oracle take control of the app's algorithm for American users, a move designed to address long-running national security concerns over its Chinese ownership.

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THE DEAL STRUCTURE

Under the agreement, Oracle will manage how TikTok’s powerful recommendation algorithm operates within the United States. While parent company ByteDance will retain ownership of TikTok globally, the deal ensures that the algorithm's governance for U.S. users will fall under Oracle's supervision.

The arrangement stops short of a full divestiture but reflects a compromise aimed at keeping TikTok available in the U.S. while appeasing concerns that the app could be used by Beijing to influence or surveil American citizens.

Oracle, headquartered in Austin, Texas, will oversee data flow, code audits, and the core algorithmic functions that determine what videos U.S. users see on their feeds. According to people familiar with the deal, the company will also have the power to monitor and block any changes to the algorithm that raise security flags.

TRUMP ADMINISTRATION’S PUSH

The deal follows years of mounting pressure from the Trump administration to force TikTok to separate its U.S. operations from Chinese control. Officials have argued that the app, with more than 170 million U.S. users, poses risks to national security by potentially allowing Chinese authorities access to sensitive user data and content moderation systems.