Oracle to Oversee TikTok's U.S. Operations in Proposed Deal

Tech giant Oracle is set to take the lead in overseeing TikTok's algorithm and security in the U.S., as part of a deal proposed by the Trump administration. The agreement aims to resolve ongoing national security concerns about the video platform's connections to its Beijing-based parent company, ByteDance.

The central issue has always been TikTok's powerful recommendation algorithm, the code that keeps users engaged. U.S. officials have expressed concern that Chinese authorities could manipulate it to influence content.

·       A "Licensed Copy": The new U.S. joint venture will receive a licensed copy of the algorithm.

·       "Retraining" with U.S. Data: The U.S. version will be "retrained" using American user data to ensure it operates appropriately. This raises questions about whether the app's user experience will change, even subtly.

·       The User Experience: The White House has stated that users will still be able to see videos from other countries and that the change won't affect the user experience. However, some analysts worry that even minor changes could alienate the audience.

The deal brings together several major players from the tech and media industries:

·       Oracle: Known for its database and cloud technology, Oracle is the designated partner for securing and monitoring U.S. data.

·       Silver Lake: The private equity firm will be a key investor.

·       Potential Investors: There is speculation that Michael Dell, Rupert Murdoch, and venture capitalist Marc Andreessen could also join the consortium.

Under the proposed framework, ByteDance will hold a minority stake of 20% or less in the new U.S. venture. Its board representation will be limited to a single person who will not be on the security committee, ensuring U.S. investors maintain control. While the deal still requires approval from China and U.S. regulators, an executive order from President Trump is expected to move the process forward.