Under a new framework, Oracle will oversee TikTok’s algorithm and data security in the US. The agreement addresses national security issues tied to ByteDance. Oracle and Silver Lake Partners could manage US operations, contingent on regulatory approval and potential investments from notable figures.
The Trump administration has outlined a framework agreement under which US technology company Oracle will take a leading role in managing TikTok’s algorithm and data security in America. The plan, revealed on Monday, seeks to address long-standing national security concerns tied to the app’s Beijing-based parent company, ByteDance.
Oracle to take charge of TikTok’s US algorithm and data security
According to senior officials, the deal would see Oracle and investment firm Silver Lake Partners form part of a consortium to run TikTok’s US operations. Media tycoon Rupert Murdoch and Dell Technologies founder Michael Dell have also been named as possible investors. President Donald Trump is expected to issue an executive order later this week endorsing the proposal, though both Chinese approval and regulatory clearance will be required before any final arrangement can be confirmed.
Central to the deal is the fate of TikTok’s recommendation algorithm, which has been the subject of intense scrutiny by US. lawmakers. Officials have argued the system could be manipulated by Chinese authorities to influence what users see. Under the current framework, the US joint venture would obtain a licensed copy of the algorithm, with Oracle tasked with monitoring, retraining and securing it using domestic data.
Concerns over compliance
“The algorithm cannot be shared with ByteDance if the platform is to comply with US law,” a spokesperson for the House Select Committee on China stressed, underscoring the importance of full technological separation.
While White House press secretary Karoline Leavitt has insisted that the user experience will remain unchanged, analysts suggest subtle shifts may occur as the retrained algorithm begins adapting to US-based data. Jasmine Enberg of eMarketer noted that any visible changes could risk alienating TikTok’s audience, given the platform’s role as a cultural as well as technological phenomenon.
Oracle and Silver Lake’s expanding role
If finalised, the deal would position Oracle and Silver Lake at the heart of TikTok’s American future. Oracle, founded nearly half a century ago and best known for its database software, has in recent years expanded into artificial intelligence and data centre infrastructure. Co-founder Larry Ellison, whose personal wealth is estimated at nearly $390 billion, would be a significant behind-the-scenes figure in shaping the platform’s trajectory.
ByteDance, meanwhile, is expected to retain a minority stake of no more than 20 per cent in the new joint venture, with limited representation on its board and no role in TikTok’s security committee.
The arrangement, if successful, could bring to a close a contentious chapter in US–China relations, where technology, trade, and national security have become tightly interwoven.
