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Published on
September 22, 2025
5 min read
TikTok Deal Gives Oracle Control Over U.S. Algorithm, Security
Software giant Oracle will run and secure the U.S. version of the TikTok algorithm, White House has confirmed. According to Yahoo Finance, Oracle will play this role under a deal that will see a consortium of American investors purchase the U.S. version of the popular Chinese video streaming platform. The TikTok Oracle deal seeks to give U.S. buyers control recommendations made by the app after a divestiture by ByteDance.
A Leased Version of TikTok Algorithm
Previously, there were suggestions for ByteDance to sell the algorithm entirely to U.S. owners. However, doing so would keep it from running TikTok in other countries. Additionally, exportation of sensitive technology is prohibited under Chinese law,
Instead. owners of the American version, who include Oracle, private equity group Silver Lake, and Andreessen Horowitz, will lease a duplicate copy of TikTok’s algorithm from ByteDance. A statement issued by a White House official shows that Oracle will retrain the leased algorithm “from the ground up”.
“Oracle, the U.S. security partner, will operate, retrain, and continuously monitor the U.S. algorithm to ensure content is free from improper manipulation or surveillance,” the White House Official said.
This arrangement is aimed at addressing one of the main concerns U.S. lawmakers had about security, data privacy, and control of TikTok’s powerful recommendation software. The public has also raised safety concerns over TikTok’s impact on youth mental health. In 2024, 13 U.S. states sued TikTok claiming that the platform harms teen mental health.
It’s still unclear whether U.S legislators who supported a qualified divestiture will accept the TikTok algorithm transfer arrangement and whether the approach taken to disentangle TikTok from ByteDance fully is feasible.
Data Security for U.S. Users
To ensure TikTok data security in the U.S., Oracle will manage data belonging to US users, including storage in a secure cloud. The software giant will establish controls to keep it out of reach by foreign adversaries, including China.
Under the deal, TikTok’s parent company ByteDance, will not control algorithms of the U.S version nor access information belonging to American subscribers. The U.S. law requires a TikTok sale to ensure that ByteDance does not play any operational role in the U.S. version of the app.
White House added that Oracle will partner with the U.S. government on all aspects of operating the TikTok app in the U.S. This includes application development, review of the source code, and algorithm retraining. It’s not clear what role the government might play in overseeing the app, its algorithm, and user data.
The need to establish security guardrails emerged in the U.S. President Donald Trump prepared to approve the sale of the popular video app TikTok to a group of American buyers. Such a deal would help ease tensions between the U.S. and China. In recent months, the two countries have clashed over trade and technology.
Approval of TikTok Deal
A senior White House official says President Trump is expected to approve the TikTok deal through an executive order later this week. Trump’s approval of the TikTok deal will conclude months of U.S.- China deliberations and establish a timeline for keeping the short video streaming application running in the U.S.
The approval will also enable Trump to fulfill his campaign promise. In December 2023, the U.S. President met TikTok’s CEO and committed to keep TikTok up in the US a little longer. On January 20, 2025, Trump restored US TikTok service after 12 hours. This happened shortly after the U.S. ban took effect on January 19, 2025. Restoration of the short-video app came shortly after the President said he’ll revive it and proposed a 50% American ownership of the platform.
In the deal, Oracle founder Larry Ellison, Michael Dell, and Rupert Murdoch will likely be part of the investors who will take over TikTok’s U.S business. TikTok’s algorithm had complicated talks regarding its sale to U.S. owners for months.
