The White House confirmed a groundbreaking deal to keep TikTok’s American operations largely under US control, with Oracle stepping up to lead the charge on algorithm oversight.
While speaking at Fox News, White House Press Secretary Karoline Leavitt emphasized that the move ensures user data stays secure and that American interests are front and center on the wildly popular video app.
This step follows intense national security concerns and political debates that have bounced the app between bans and negotiations for years.
With Oracle and an investor consortium set to own roughly 80% of the US TikTok business, the deal aims to balance tech innovation with geopolitical tensions.
It reflects ongoing efforts to tighten control over foreign tech in the US, while still allowing users to enjoy the platform they love.
The TikTok deal
At the heart of the deal is a fresh US-based entity controlling TikTok’s American operations.
Oracle, known for its cloud computing and database services, will manage key parts of TikTok’s infrastructure, including hosting US user data in secure Texas data centers.
Alongside private equity firm Silver Lake and Andreessen Horowitz, Oracle is taking on a majority ownership stake, with ByteDance, the Chinese parent company, holding a minority share.
This structure promises a predominantly American board, including a government-appointed seat to keep a close eye on operations.
What’s most crucial is Oracle’s control over the algorithm powering TikTok’s viral content recommendations.
Keeping the algorithm “in the US” is a major win for American regulators concerned about potential Chinese influence on what users see.
The new US version of TikTok might even require users to transition to a freshly developed app, separating it from the international version.
While details are still being finalized, this deal represents a rare example of a Chinese tech giant ceding some control in the US market.
US-China dynamics and the bigger picture
This TikTok deal isn’t just about a social media app; it’s a symbol of the fractured, tense relationship between the US and China.
For years, TikTok has been caught in the crossfire of growing distrust between the two superpowers.
American officials have feared that Chinese ownership could lead to user data being exploited, or content being curated to serve Chinese interests.
China, on the other hand, has resisted any forced sale that would diminish its influence on one of its biggest global tech successes.
Negotiations have been long and bumpy. Recent talks, including a phone call between Presidents Trump and Xi Jinping, signaled progress but also highlighted lingering issues, like China’s insistence on retaining some say over the app’s algorithm.
Experts view China’s openness to the deal as a strategic move to ease trade tensions and maybe negotiate concessions elsewhere, such as tariffs or technology exports.
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