Oracle (NYSE: ORCL) is aiming to recreate, operate, and secure a US-only TikTok algorithm under a Trump-backed sale, with ByteDance’s ownership falling below 20%, a White House official has said.
Per the official, the US buyers will lease a copy of TikTok’s recommendation engine from ByteDance that Oracle will “retrain from the ground up.” The mandate is to ensure the US venture—not ByteDance—controls the recommendation software for American users after divestiture.
All US user data will reside in an Oracle-managed secure cloud, with controls designed to block foreign access. ByteDance will have no access to US subscriber information and no control over the US algorithm, the official said.
Lawmakers’ constraints remain pivotal. US law forbids ByteDance from any operational role in the new US app, including software, while Chinese export rules restrict transfer of sensitive algorithmic technology. The official acknowledged it is unclear whether lawmakers who supported a qualified divestiture will accept the lease-and-retrain model or whether full technical disentanglement is feasible.
Rep. John Moolenaar, who heads the House Select Committee on China, warned last week the framework “may involve ongoing reliance by the new TikTok on a ByteDance algorithm and application that could allow continued” influence by China’s Communist Party. Supporters of the sale law argue the platform could otherwise be used for data access or propaganda—claims TikTok and Beijing have rejected.
On timing, the White House said President Donald Trump will sign an executive order this week to formalize approval. To enable closing, Trump plans to extend the divestiture deadline by an additional 120 days following last week’s signed 90-day extension to mid-December 2025.
Trump said Friday he had spoken with China’s president and expressed confidence in the path forward.
“I had a great call with President Xi and as you know, and approved the TikTok deal, and we’re in the process,” he told reporters. “We look forward to getting that deal closed.”
Beijing’s public stance stopped short of an endorsement. “The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides,” China’s foreign ministry said.
The new US venture will be majority-owned by US investors: six of seven board seats will be held by Americans. ByteDance will hold one seat but be excluded from the security committee.
Oracle is part of the investor group with Andreessen Horowitz and Silver Lake Management.
The arrangement expands Oracle’s existing TikTok business. Oracle already provides cloud services and hosts user data under Project Texas, a multibillion-dollar partnership.
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
