Under a deal backed by the Trump administration, Oracle will take the lead in overseeing TikTok’s algorithm and security in the U.S., as part of a newly formed American joint venture.
Final terms are still being finalized between several partners, including Oracle, investment firm Silver Lake, and possibly billionaires Rupert Murdoch and Michael Dell. The U.S. government will not have ownership or a board seat in the new venture, according to a senior White House official.
President Trump is expected to sign an executive order confirming that the agreement addresses national security concerns. China must also approve the framework, and regulatory review is still required.
This proposal is part of a long-standing push to separate TikTok’s U.S. operations from its Chinese parent company, ByteDance, due to fears of data misuse and manipulation. The issue has been a key point in ongoing trade tensions between the U.S. and China.
According to the Trump administration’s timeline, a group led by Oracle and Silver Lake will take over U.S. operations of TikTok — a process that may extend into early next year. This means the divestiture could occur nearly a year after the app was originally slated to be banned under bipartisan legislation that Trump repeatedly postponed.
The new U.S.-based entity will be granted a licensed version of TikTok’s core recommendation algorithm, which keeps users engaged by curating personalized video feeds. Oracle will be tasked with overseeing and securing the data of U.S. users.
U.S. officials have raised concerns that the original algorithm, developed by ByteDance, could be influenced by the Chinese government to manipulate content in subtle, hard-to-detect ways.
A House Select Committee on China spokesperson emphasized that any shared algorithm with ByteDance would violate U.S. regulations. The bipartisan law requires TikTok to sever algorithmic ties with its Chinese parent to be compliant.
A U.S. official noted that the licensed algorithm will be retrained using American data to ensure it operates safely and ethically — though it’s unclear how different the U.S. version will be from TikTok elsewhere. Significant changes could risk alienating users, said Jasmine Enberg, an analyst with eMarketer, who noted that cultural dynamics are just as critical as technology in social media.
However, White House Press Secretary Karoline Leavitt assured that users will still be able to access global content. “TikTok users in the U.S. will be able to view videos from international users and vice versa,” she stated.
The situation is reminiscent of Elon Musk’s controversial $44 billion acquisition of Twitter, which led to major changes, including its rebranding to “X.” Any changes to TikTok under the new arrangement, however, are expected to be more gradual and less visible.
What’s clear is that Oracle and Silver Lake are poised to play a major role in TikTok’s U.S. operations. Oracle, known for its database and enterprise software, has since expanded into AI and cloud infrastructure. Larry Ellison, Oracle’s co-founder and now chairman, remains a key figure, with a net worth estimated at $390 billion. He also played a financial role in Skydance’s $8 billion merger with Paramount, a deal orchestrated by his son, David.
Silver Lake has a history of major tech investments, including Dell and Skype. Michael Dell, the founder of Dell Technologies, may become one of the investors in the new TikTok venture, as suggested by Trump in a recent interview with Fox News. Trump also mentioned Rupert Murdoch as a potential investor.
There are also reports that venture capitalist Marc Andreessen is seeking to join the investor group. Andreessen was involved in Silver Lake’s 2009 acquisition of Skype.
ByteDance is expected to retain a minority stake of no more than 20% in the U.S. entity, which will be governed by a board dominated by American investors. ByteDance will be allowed one board member, though that individual will not be involved in security matters.