WASHINGTON (Diya TV) — Oracle will oversee Americans’ data and monitor TikTok’s algorithm under a new deal aimed at avoiding a U.S. ban, White House officials said Monday.
The agreement would place TikTok’s U.S. operations under American control while ensuring user data remains secure. The plan also involves licensing TikTok’s recommendation algorithm from China to a U.S.-based investor group.
The move comes after long-standing concerns that the popular video app could give China access to sensitive American data or influence content online. President Donald Trump has delayed the enforcement of a law that could have banned the app multiple times while negotiations continued.
Oracle, a major software company, will monitor updates to TikTok’s algorithm and safeguard user information. The private equity firm Silver Lake will also invest in the new American TikTok, according to senior officials.
Under the deal, American investors will hold roughly 80% of the U.S. version of TikTok. ByteDance, TikTok’s Chinese parent company, and other Chinese investors will retain less than 20%. Oracle and other U.S. partners will manage the app independently of ByteDance.
“This ensures TikTok’s data and operations are secured in the United States,” one official said. “The algorithm will be retrained using U.S. user data, and China will not have access.”
Control over TikTok’s recommendation technology has been a sticking point in discussions. Chinese law mandates that the algorithm remain under Beijing’s control. U.S. law requires the app to be separated from ByteDance, including its content recommendation systems.
Officials said a board of directors with national security and cybersecurity credentials will run TikTok in the U.S. ByteDance will appoint one of seven board members, but that person will not serve on the app’s security committee.
Reports suggest media mogul Rupert Murdoch and his son Lachlan might invest through Fox Corporation. The final mix of investors is still being negotiated.
President Trump is expected to issue an executive order later this week declaring the deal meets national security and divestiture requirements. Regulatory approval is still required before the agreement is finalized.
Trump has indicated the U.S. government will benefit financially from the deal but will not take a stake in TikTok, unlike previous investments in companies like U.S. Steel and Intel.
The plan shares features with ByteDance’s earlier “Project Texas,” which aimed to address U.S. national security concerns. That project also proposed storing U.S. user data on domestic servers operated by Oracle and having the company review TikTok’s source code to prevent manipulation.
Officials said the deal may take time to complete. Trump plans to extend the ban deadline by 120 days to allow the transaction to finalize.
Monday also saw Oracle promote executives Clay Magouyrk and Mike Sicilia to co-chief executives. Safra Catz, the current CEO, was named executive vice chair of the board.
The agreement signals a major step in keeping TikTok available for U.S. users while addressing concerns about Chinese control. Lawmakers and national security officials have long debated how to balance consumer access to the app with the need to protect sensitive data.
By moving oversight and control of TikTok’s U.S. operations to American companies, the administration hopes to prevent potential misuse of user data while allowing the app to continue operating.
