Tech giant Oracle is set to obtain a copy of the algorithm behind TikTok to manage it for U.S. users, shared a senior official from President Donald Trump’s administration on Monday.
Working out the future of this algorithm, owned by Beijing-based ByteDance, has been a key focal point in negotiations concerning TikTok’s operations moving forward.
According to a Trump administration official, speaking anonymously about the deal, there is confidence that the plan will meet national security requirements if TikTok separates from its Chinese owner, ByteDance. Before leaving office, President Joe Biden enacted a bipartisan law mandating the sale of the Chinese company’s U.S. assets to an American entity, or TikTok could face a ban.
Warnings have been issued by American officials about the algorithm’s vulnerability to manipulation by Chinese authorities, positing that it could be used to alter content on the platform in subtle ways.
“The arrangement would not suffice if the algorithm remains Chinese. ByteDance cannot share any algorithm,” noted a spokesperson from the House Select Committee on China.
Oracle would receive a copy of the algorithm and oversee the app’s security operations.
On Monday, a senior White House official stated the algorithm would undergo a complete inspection and retraining. In a call with reporters, it was underscored that the system would be retrained using only U.S. data to ensure proper functionality. Although it’s uncertain if this retraining would create a distinct TikTok experience for U.S. users, White House press secretary Karoline Leavitt mentioned in a briefing that “U.S. TikTok users will be able to view videos from international users and the reverse.”
“What the president will sign later this week is an executive order, essentially declaring that the terms of this deal meets America’s national security needs,” the White House official said. He notes that China is expected to sign and approve a framework deal for TikTok’s divestment by the end of the week, upon which Trump will issue a 120 day reprieve, giving both nations time to get necessary agreements finalized.
Full details on investors have not been released. However, the official confirmed that the U.S. operations will be a new joint venture with a board of directors that will have a majority of American members – Oracle and Silver Lake, a private equity firm, are the only confirmed consortium participants so far.
The White House official also said that under the preliminary deal – which still requires Chinese officials to sign off on a framework agreement – the United States will not take equity stake in the new venture or have representation on the controlling committee.
Trump, a Republican, has extended the deadline several times as he worked to reach a deal to keep TikTok available. He spoke to Chinese President Xi Jinping on Friday.
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