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Oracle Corp. will spearhead U.S. oversight of TikTok’s algorithm and security under a framework deal advanced Monday by President Donald Trump’s administration, in the most significant step yet toward severing the Chinese-owned app’s ties with Beijing.
The proposal calls for a consortium of U.S. investors — led by Oracle and private equity firm Silver Lake Partners — to form a new joint venture to manage TikTok’s American business. Media mogul Rupert Murdoch and Dell Technologies founder Michael Dell may also join the investment group, Trump told Fox News in an interview.
A senior White House official said the U.S. government would not hold a stake in the venture or sit on its board. The deal still requires approval from Chinese regulators and will face U.S. regulatory review.
National security concerns
The plan is designed to resolve years of national security scrutiny over TikTok’s Beijing-based parent company, ByteDance. American officials have long warned that TikTok’s recommendation algorithm could be manipulated by Chinese authorities to spread disinformation or suppress content.
“It wouldn’t be in compliance if the algorithm is Chinese,” a spokesperson for the House Select Committee on China said. “There can’t be any shared algorithm with ByteDance.”
Under the current terms, the U.S. joint venture would obtain a licensed copy of TikTok’s recommendation engine, which Oracle would retrain with American user data to ensure it “behaves appropriately,” according to the White House. ByteDance is expected to retain a stake of 20% or less, with limited board representation excluded from security oversight.
What changes for users?
White House press secretary Karoline Leavitt said U.S. users would continue to access global content. “TikTok users in the U.S. will be able to see videos posted by users in other countries and vice versa,” she said Monday.
Still, analysts cautioned that subtle shifts in the app’s recommendation system could alter user experience. “Social media is just as much about culture as it is about technology,” said Jasmine Enberg, a senior analyst at eMarketer. “How users respond to new ownership — and potentially a recalibrated algorithm — is still an open question.”
The rollout could extend into early 2026, meaning the transfer of control may not be completed until nearly a year after TikTok was supposed to be banned under bipartisan legislation that Trump has repeatedly delayed.
Big tech, big money
The deal would mark a major expansion of Oracle’s role in U.S. technology and media oversight. Founded nearly 50 years ago as a database software company, Oracle now operates vast data centers that underpin cloud computing and artificial intelligence. Its co-founder, Larry Ellison, remains an influential executive and one of the world’s wealthiest individuals, with a fortune estimated at $390 billion.
Silver Lake, which has orchestrated multibillion-dollar tech deals involving Dell and Skype, is also expected to play a leading role. Other possible investors include billionaire venture capitalist Marc Andreessen, who previously partnered with Silver Lake on the Skype acquisition.
If finalized, the deal would give Oracle and Silver Lake unprecedented influence over one of the world’s most popular social media platforms, with U.S. regulators and China’s government both holding veto power over its final terms.
