Oracle Secures TikTok's Algorithms in the US, Enhancing Data Security

The US administration has outlined a deal to sell TikTok to American investors, with Oracle taking control of the app's algorithm to address national security concerns about Chinese parent company ByteDance. The plan would rebuild TikTok's recommendation system from scratch on US servers, completely cutting off Chinese access to American user data.

Under the proposed arrangement, Oracle would lease a copy of TikTok's algorithm from ByteDance but retrain it entirely within the United States. A White House official said the tech giant would rebuild the system "from zero" while maintaining the highest security standards.

All American user data would move to Oracle's secure cloud servers, with strict controls preventing any outside access, including from China. The Chinese company would lose all control over the algorithm in the US market and couldn't access subscriber information.

"Oracle, as the United States' security partner, will operate the American algorithm, retrain it, and monitor it continuously to ensure it's free from any manipulation or unauthorized surveillance," according to an official statement.

**The technical challenge**

The algorithm represents the most complex part of this deal. New US law bars ByteDance from any operational role in the American version of the app. But Chinese law prohibits exporting sensitive technologies like recommendation algorithms. This creates a legal puzzle that both countries need to solve.

It's still unclear whether American lawmakers will accept this arrangement or if it's technically possible to completely separate TikTok from ByteDance. The companies have been deeply integrated since ByteDance acquired Musical.ly and merged it with TikTok.

The US official said Oracle would work with the government at every level - from app development and algorithm retraining to reviewing the actual code. But the government's exact role in overseeing the app and user data remains undefined.

**Political timing**

President Trump is preparing to finalize this long-awaited plan as he pushes to deliver on campaign promises. The deal could remove a major obstacle in US-China relations, which have grown increasingly tense over tariffs and technology restrictions.

For investors, this creates a new model for handling foreign tech companies that raise security concerns. If successful, it could set the template for future deals involving Chinese apps or platforms operating in America.

The arrangement still faces hurdles. Congress needs to approve the structure, and both Oracle and the investor group need to prove they can actually separate TikTok's operations from Chinese influence. Technical experts question whether you can truly isolate such a complex algorithm from its original creators.

TikTok has about 170 million American users, making this one of the largest forced tech sales in US history. The outcome will likely influence how other countries handle Chinese technology companies and could reshape the global internet landscape.