Oracle to Rebuild TikTok Algorithm in Trump-Backed U.S. Deal

TLDR

Table of Contents

Oracle will rebuild TikTok’s algorithm from scratch for U.S. operations under the Trump-backed deal
ByteDance will retain less than 20% ownership while six of seven board seats go to American investors
Oracle will store U.S. user data in secure cloud systems with no Chinese access to information
Trump plans to sign executive order this week and extend divestiture deadline by 120 days
Deal includes American investors like Larry Ellison, Michael Dell, and the Murdoch family

Oracle will create and secure a completely new version of TikTok’s recommendation algorithm for American users as part of the emerging deal to sell the Chinese-owned app to U.S. investors. The arrangement addresses key national security concerns raised by lawmakers about foreign control over the popular video platform.

Under the agreement, Oracle will lease a copy of the current algorithm from ByteDance and retrain it entirely from scratch. The cloud computing company will operate this new system in partnership with the U.S. government, handling everything from algorithm development to source code reviews.

Media mogul Lachlan Murdoch, Oracle’s Larry Ellison, and Dell’s Michael Dell are poised to invest in a deal to keep TikTok operating in the US, President Trump tells Fox News https://t.co/08pgInfeYz pic.twitter.com/LuZ1K9NPis
— Reuters (@Reuters) September 22, 2025

ByteDance will retain ownership of less than 20% of the U.S. operations to comply with federal divestiture laws. Six of the seven board seats will be held by American investors, while ByteDance gets one seat but remains excluded from the security committee.

The investor group includes Oracle founder Larry Ellison, Dell Technologies’ Michael Dell, and Fox Corp’s Rupert and Lachlan Murdoch. Andreessen Horowitz and Silver Lake Management are also part of the consortium purchasing the U.S. operations.

Data Security Measures

Oracle will store all U.S. user data in secure cloud systems designed to prevent access by foreign adversaries, including China. ByteDance will have no access to information about American TikTok users under the new structure.

The company will continuously monitor the U.S. algorithm to prevent improper manipulation or surveillance. This represents a major expansion of Oracle’s existing relationship with TikTok through Project Texas, which already hosts some user data.

Chinese law currently prohibits the export of algorithm technology, creating potential legal complications for the deal. It remains unclear whether this arrangement will satisfy both Chinese regulations and U.S. lawmakers who supported the original divestiture requirement.

Government Approval Process

Trump plans to sign an executive order this week formalizing his approval of the transaction. He will also extend ByteDance’s divestiture deadline by an additional 120 days, following a previous 90-day extension to mid-December.

The Chinese government has offered measured support for the negotiations. The Ministry of Commerce stated that China welcomes business negotiations conducted according to market rules and Chinese laws.

Chinese officials hope the United States will provide a fair business environment for Chinese companies, including TikTok, to continue operations. However, they stopped short of offering full endorsement of the specific deal terms.

The White House official confirmed that Trump discussed the arrangement with Chinese President Xi Jinping during a recent phone call. Trump expressed confidence that all parties support the transaction moving forward.

Congressional lawmakers who backed the original TikTok ban have promised to scrutinize the algorithm arrangements carefully. Some remain concerned about potential ongoing Chinese influence through the ByteDance connection.

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