The White House confirmed an agreement that completely redefines the operation of TikTok in the United States. Although it is not a traditional acquisition, the tech company Oracle —whose former CEO Larry Ellison is close to Donald Trump- will take control of the algorithm that drives content recommendations for U.S. users. The measure is part of a strategy to ensure national security, a constant concern of the federal government regarding China’s possible influence through TikTok’s parent company, ByteDance.
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A senior U.S. government official explained that the company resulting from this agreement will obtain a copy of the recommendation algorithm. This tool will be “thoroughly inspected and completely retrained by the security provider with respect to U.S. user data, and then will be operated by that U.S. entity.”
Donald Trump has been one of the strongest advocates for the need to separate TikTok from its Chinese parent, ByteDance. During his first presidential term, the Republican had already pushed for the sale of TikTok, citing possible risks of espionage and manipulation by the Chinese government. That stance continued in his new term and culminated in the approval by Congress of a law requiring ByteDance to sell or face a ban on the platform in the United States.
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In addition, Trump claimed that the agreement has the approval of Chinese President Xi Jinping, after a phone call between the two leaders.
What role do Larry Ellison and Oracle play in the new U.S. TikTok?
Larry Ellison, founder of Oracle and a close ally of Donald Trump, plays a central role in the new structure of TikTok in the United States. Oracle will not only gain access to the platform’s source code but will also be licensed to use and retrain the Chinese recommendation algorithm from scratch. In collaboration with the U.S. government, Oracle will be responsible for ensuring that “undue manipulation is avoided” in the content users receive.
This move further consolidates Ellison’s influence in both the tech and political spheres. In addition, Oracle will store U.S. user data, keeping it out of reach of foreign powers such as China. The measure seeks to provide cybersecurity guarantees in an increasingly tense global context.
What structure will the new TikTok have in the United States?
The agreement envisions the creation of a new company to operate TikTok in the United States. ByteDance will retain less than 20% ownership in this new entity, effectively removing it from operational control. On its board of directors, six of the seven seats will be held by U.S. representatives.
White House spokesperson Karoline Leavitt confirmed that there will be seven seats on the board that controls the app in the United States, and six of those seats will be held by Americans.
It is also mentioned that among the new investors could be Rupert Murdoch and his son Lachlan, owners of Fox Corporation and key figures in U.S. conservative media. The participation of Michael Dell, CEO of Dell Technologies, and venture capital firm Andreessen Horowitz is also being considered, whose founders have also shown affinity with Trump.
What will happen with TikTok’s algorithm?
The algorithm is the heart of TikTok. It is the engine that determines what videos each user sees, and it has been the most sensitive point of the negotiation. U.S. law prohibits ByteDance from continuing to be involved in the control of this technology in the country, while China has strict restrictions on the export of algorithms classified as “strategic technology.”
To navigate this dilemma, the agreement proposes an intermediate solution: Oracle will obtain a license to replicate the software and retrain the algorithm under constant U.S. government supervision. Although this solution is intended to comply with the laws of both countries, doubts remain about its technical feasibility and whether the toughest sectors of the U.S. Congress will accept it without objections.
A White House official stressed that the algorithm will be “monitored” on a permanent basis to ensure that “it is not being unduly influenced.” Oracle will have the ability to modify its operation to adapt it to U.S. security standards and values.
Is ByteDance out of the game?
ByteDance, the Chinese parent company of TikTok and Douyin (the Chinese version of the app), will maintain only a minimal stake in the new U.S. company, without operational access or decision-making power. It will only keep one seat on the board of directors.
However, its role remains under scrutiny, especially since any future involvement, even indirectly, could reignite geopolitical tensions.
