Under the terms of a deal framework laid out by President Donald Trump’s administration, tech giant Oracle will spearhead U.S. oversight of the algorithm and security underlying TikTok’s popular video platform. The final details of the deal still need to be finalized among several joint venture partners, which are expected to include Oracle and investment firm Silver Lake Partners. There is also a possibility that media mogul Rupert Murdoch and personal computer pioneer Michael Dell could be involved. According to a senior White House official, the U.S. government would not have a stake in the joint venture or a seat on its board.
President Trump is expected to issue an executive order that declares the terms of the deal meet national security concerns. The framework still requires regulatory approval, and China needs to sign off on the proposal. The new U.S. joint venture is expected to receive a licensed copy of the recommendation algorithm, which is central to TikTok’s success. American officials have previously warned that this algorithm could be vulnerable to manipulation by Chinese authorities.
The Central Role of the Algorithm
The recommendation algorithm has been a central issue in the security debate over TikTok. A U.S. law passed with bipartisan support had mandated that any divestment of TikTok must mean the platform cuts ties—specifically the algorithm—with its Beijing-based parent company, ByteDance. A spokesperson for the House Select Committee on China stated, “It wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance.”
An administration official said that under the current proposal, the licensed copy of the algorithm will be “retrained” with U.S. data to ensure the system is “behaving appropriately.” It remains unclear if the U.S. version of TikTok will look or function differently from the global version. However, social media analyst Jasmine Enberg noted that any noticeable changes could risk alienating its audience. White House press secretary Karoline Leavitt said that the user experience will remain consistent, and that “TikTok users in the U.S will be able to see videos posted by users in other countries and vice versa.”
The Players in the New Joint Venture
If the deal is finalized, Oracle and Silver Lake will be key players in TikTok’s future in the U.S. Founded nearly 50 years ago, Oracle’s success was built on database software. Its co-founder, Larry Ellison, remains a top executive. Silver Lake has long focused on tech buyouts, including past acquisitions of Dell Computer and Skype. Michael Dell, who founded Dell Computer, may now be one of the investors in the joint venture. ByteDance is expected to have a 20%, or smaller, stake in the new company, with its representative on the board being excluded from TikTok’s security committee. The divestment of TikTok’s U.S. operations might not be completed until early next year.
What The Author Thinks
This deal is a creative but highly complex solution to a fundamental problem: the distrust between two superpowers over data and influence. While the proposed framework seems designed to satisfy all parties on paper, the real-world execution will be a significant challenge. The plan to license and “retrain” an algorithm is an unprecedented step that could have unintended consequences for the user experience and is a testament to how deeply intertwined technology has become with national security. It’s a pragmatic compromise that aims to balance economic interests with national security, but the ultimate success hinges on whether the new entity can truly operate independently of its Chinese origins, a feat that is easier said than done.
Featured image credit: Wikimedia Commons
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