Oracle to Oversee TikTok Algorithm as US Sale Nears Completion
The White House has confirmed that Oracle will oversee TikTok’s algorithm in the United States as part of a landmark deal that will transfer the popular social media app’s US operations to a majority American-owned company.
A senior White House official revealed on Monday that under the agreement, TikTok’s content recommendation algorithm – a key factor behind its massive global success – will be hosted and operated in the US, with Oracle continuously monitoring how it pushes content to users. This move directly addresses longstanding national security concerns over potential Chinese government influence through TikTok’s China-based parent company, ByteDance.
The deal will establish a new joint venture in the US with a majority-American board of directors and investors. Oracle and private equity firm Silver Lake are among the confirmed investors, while Fox Corp. will also hold a stake. ByteDance will retain less than 20% ownership, ensuring that control of the US TikTok operations remains firmly in American hands.
President Donald Trump, who has been a driving force behind the negotiations, said tech and media figures such as Michael Dell and members of the Murdoch family may also be involved through their companies. He is expected to sign an executive order later this week, declaring the deal a “qualified divestiture” under the ban-or-sale law passed last year. The order will also extend a 120-day pause on enforcing the law to allow time for regulatory approvals and paperwork to be completed.
US officials say they are “100% confident” the deal will be finalized soon, pending approval from Chinese regulators. The sale is expected to be completed early next year, bringing to an end years of tension over TikTok’s ownership and data security practices.
The fate of TikTok’s algorithm was one of the final sticking points in the negotiations. US lawmakers feared ByteDance could manipulate the recommendation engine to spread misinformation or influence American public opinion. Under the deal, the new American ownership group will receive a copy of the algorithm’s code, retrain it using US data, and operate it independently from ByteDance.
It remains unclear whether US TikTok users will need to download a separate version of the app once the transition is complete.
This agreement builds on Oracle’s existing role in storing TikTok’s US user data domestically, a safeguard introduced in earlier efforts to protect against foreign interference. Oracle Chairman Larry Ellison, a close ally of Trump, has been closely involved in the negotiations.
In a related development, Oracle announced a leadership shake-up on Monday, with CEO Safra Catz stepping down to become vice chair of the board. She will be replaced by co-CEOs Clay Magouyrk and Mike Silica. While it is unclear whether this change is directly tied to the TikTok deal, the move could free up Catz to play a prominent role in the new venture.
The White House has not decided whether it will charge a fee for brokering the multibillion-dollar agreement but confirmed it will not hold an equity stake in the new company.
Once finalized, the deal will mark a major shift in TikTok’s operations and could set a precedent for how the US handles foreign-owned apps deemed to pose national security risks.
