Oracle Takes Charge: The Future of TikTok's Algorithm in the US
Tech giant Oracle will receive a copy of TikTok's algorithm to manage its US operations, addressing national security concerns. A new joint venture, including American majority board participants, is forming but awaits Chinese approval. The plan ensures the algorithm is retrained on US data for compliance.
- Country:
- United States
In a significant development, Oracle is set to take over the operations of TikTok's algorithm for US users, a senior Trump administration official confirmed Monday. This move is part of efforts to mitigate national security concerns and follows months of intense negotiations with TikTok's parent company, ByteDance.
The impending deal requires ByteDance to divest the algorithm, ensuring it operates independently of Chinese influence. The transition includes retraining the algorithm with US data to fortify compliance. An executive order from President Trump will be issued by week's end, stipulating a 120-day deadline for finalizing the terms and providing a provisional reprieve.
While details surrounding investors remain under wraps, Oracle and Silver Lake have emerged as part of a new joint venture that will feature predominantly American board members. The agreement is pending Chinese government approval, with the US refraining from taking an equity stake or seats on the controlling committee.
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