The White House announced Monday that Oracle will take charge of powering TikTok for American users, with the app’s recommendation algorithm to be operated entirely in the United States.
A senior administration official said during a press call that the arrangement is designed to resolve years of debate over how to handle the Chinese-owned platform, which has raised repeated national security alarms.
TikTok’s parent company, Beijing-based ByteDance, has faced pressure since President Joe Biden signed bipartisan legislation requiring its U.S. assets to be sold or risk a nationwide ban. Lawmakers and intelligence officials have long warned that ByteDance’s control of TikTok could allow Chinese authorities to manipulate what users see in subtle but influential ways.
“It wouldn’t be compliant if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance,” a spokesperson for the House Select Committee on China said.
Under the new plan, Oracle will take possession of the algorithm’s code and oversee security operations for TikTok’s U.S. business. The algorithm will undergo a “full inspection and retraining,” according to the White House official, who stressed it will be rebuilt exclusively on American user data to ensure “the system is behaving appropriately.” Whether that process creates a uniquely American version of TikTok remains an open question.
President Donald Trump is expected to sign an executive order later this week declaring that the agreement meets U.S. national security standards. The order will also grant a 120-day extension to finalize all contracts.
Unlike some earlier proposals, the U.S. government will not take a financial stake in the restructured entity or have seats on its oversight committee.
Trump, who has repeatedly extended deadlines as talks dragged on, discussed the matter directly with Chinese President Xi Jinping on Friday. The deal still requires final approval from Chinese authorities.
