Oracle Gets the Keys to TikTok’s Algorithm Under Trump’s New Deal

Oracle, the American technology corporation, has been designated to manage the algorithm that powers the social media platform TikTok for U.S. users. This information comes from a senior official in the Trump administration who wished to remain anonymous.

The future of TikTok’s algorithm, presently owned by Beijing-based ByteDance, has sparked intense scrutiny during ongoing negotiations about TikTok’s destiny. The anonymous official asserts that the proposed arrangement should alleviate national security apprehensions, contingent on TikTok severing ties with ByteDance. This development follows earlier reports that legislation requiring ByteDance to divest its assets to an American company was signed by President Joe Biden before his departure from office.

We should note that American authorities have previously expressed concerns. They warn that the algorithm, which determines the content users view on TikTok, may be susceptible to manipulation by Chinese authorities. Such interference could subtly direct content in a manner that would be challenging to discern.

Under the emerging arrangement, Oracle would gain a copy of the algorithm and assume responsibility for the app’s security operations. The senior White House official assured that the algorithm would be “fully inspected and retrained” on U.S. data exclusively. This is to ensure that the system functions correctly, although it remains uncertain whether retraining the U.S. version of the algorithm on local data would result in a separate TikTok experience for American users.

The official stated that President Trump would sign an executive order later this week, confirming that the terms of the deal align with America’s national security requirements. This would be followed by a 120-day reprieve to finalize necessary agreements. Details regarding investors remain undisclosed, but the official confirmed that the U.S. operations would involve a new joint venture, with a majority-American board of directors. Oracle and Silver Lake, a private equity firm, are the only confirmed consortium participants at this time.

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This raises important questions about the preliminary deal, which still requires Chinese officials’ approval. The United States will not take an equity stake in the new venture or have representation on the controlling committee, the White House official confirmed. Trump has extended the deadline for the deal multiple times, reportedly discussing the matter with Chinese President Xi Jinping last Friday.

The significance of this should not be overlooked. As this situation evolves, the importance of staying informed and understanding the potential implications and consequences of this deal cannot be overstated.