Oracle to Oversee TikTok Algorithm in U.S. Security Deal

Tech company Oracle is set to manage the security of a licensed copy of TikTok’s recommendation algorithm under the terms of a proposed divestment agreement, according to a senior official from former President Donald Trump’s administration.

The future of TikTok’s algorithm, currently owned by Beijing-based ByteDance, has been a central issue in ongoing negotiations over the app’s U.S. operations.

AP News reports that the official, speaking on the condition of anonymity, said the plan is expected to address national security concerns if TikTok separates from its Chinese parent company. Earlier, President Joe Biden signed bipartisan legislation requiring ByteDance to sell its U.S. assets to an American company or face a ban.

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U.S. authorities have long expressed concern that the algorithm controlling what users see on TikTok could be manipulated by Chinese officials, shaping content in ways that are difficult to detect.

“It wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance,” said a spokesperson for the House Select Committee on China.

Under the deal, Oracle would receive a copy of TikTok’s algorithm and oversee the app’s security operations. The system would be closely inspected and monitored for any irregular activity, the White House official said.

The official also noted that the algorithm would be retrained using U.S. data to ensure it operates appropriately. While it’s unclear whether this would create a separate experience for U.S. users, White House press secretary Karoline Leavitt emphasized that American users would still see videos from international users and vice versa.

Later this week, the president is expected to sign an executive order affirming that the deal meets U.S. national security standards. China is also expected to approve a framework agreement by week’s end, after which Trump would grant a 120-day period to finalize the terms.

Details about investors in the new venture remain limited. The official confirmed that the U.S. operations would form a joint venture with a board dominated by American members. So far, Oracle and private equity firm Silver Lake are the only confirmed participants.

The preliminary deal specifies that the U.S. government will not hold an equity stake or have representation on the controlling committee, pending final approval from Chinese authorities.

Trump, who repeatedly extended the divestment deadline, met with Chinese President Xi Jinping on Friday as part of ongoing efforts to ensure TikTok remains available in the U.S.

Oracle to Manage TikTok Algorithm In Proposed U.S. Security Deal  was originally published on wolbbaltimore.com