Oracle to Develop US TikTok Algorithm Amid National Security Concerns

On September 23, 2025, Oracle announced plans to develop and secure a US version of TikTok’s algorithm. This initiative comes as part of the sale of ByteDance’s interests in the United States, addressing growing national security concerns regarding Chinese influence over American data and technology.

ByteDance will grant Oracle a license to create a US-specific copy of the algorithm, which dictates the videos presented to users. Under this agreement, Oracle will manage and retrain the algorithm, ensuring it operates under US control. This move is seen as a crucial step to safeguard American user data from potential foreign risks.

The deal results in the formation of a new US entity, with American investors, including Oracle, Silver Lake, and Andreessen Horowitz, collectively holding approximately 80% of TikTok’s US operations. In contrast, ByteDance will retain less than 20%. According to the White House, six of the seven board seats for this new company will be filled by American citizens, with ByteDance allowed to nominate just one seat. However, ByteDance will not have any role in the security or management of the algorithm.

In addition to Oracle’s involvement, US President Donald Trump mentioned that Michael Dell, founder of Dell Technologies, and Fox Corporation may also play significant roles in this transaction. The details surrounding the deal indicate a strong push towards ensuring that TikTok’s operations in the US are aligned with domestic security standards and regulations.

This agreement is part of a broader effort by US officials to limit foreign influence in critical technology sectors and to enhance the security of user data. The emphasis on American control over TikTok’s algorithm and data management reflects ongoing tensions between the US and China regarding technology and cybersecurity.

As the situation continues to unfold, the implications of this deal could significantly shape the future of social media in the United States, as well as the relationship between American and Chinese tech companies.