A proposed divestment deal for TikTok’s U.S. operations from its Chinese owner ByteDance is nearing completion, with tech giant Oracle set to manage the app’s algorithm. Under the agreement, TikTok’s U.S. operations will be transferred to an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz. The Trump administration has stated the deal addresses national security concerns, as ByteDance will retain less than 20% of the stake.
U.S. officials have previously warned that TikTok’s algorithm, which dictates user content, could be manipulated by Chinese authorities to influence public perception. A House Select Committee on China spokesperson emphasized that the algorithm must not remain under Chinese control, stating, “There can’t be any shared algorithm with ByteDance.” Oracle will receive a copy of the algorithm and oversee security operations, with the system subject to “full inspection” for irregularities.
White House officials confirmed the content recommendation formula will be retrained using U.S. data to ensure compliance. While it remains unclear if this will create a distinct TikTok experience for U.S. users, White House press secretary Karoline Leavitt asserted that cross-border video sharing would remain intact. President Trump is expected to sign an executive order later this week, formalizing the deal as a qualified divestiture under the ban-or-sale law. The agreement also includes extending the enforcement pause of the law by 120 days to finalize regulatory approvals.
The outcome of the algorithm’s management had been a central issue, as its role in TikTok’s popularity raised security risks. U.S. officials feared ByteDance could manipulate the system to sway public opinion. Under the deal, the new ownership group will review and retrain the algorithm on U.S. data, with Oracle monitoring content distribution continuously.