Oracle is set to recreate and manage a new US version of TikTok’s algorithm as part of a proposed sale of the app to a group of American investors, according to a White House official.

The plan would see US-based TikTok owners lease an algorithm from ByteDance, which Oracle would retrain and oversee to address US lawmakers’ concerns over foreign influence.

Oracle, based in Austin, already provides cloud services for TikTok and would store US user data in a secure system designed to block access by foreign entities, including ByteDance.

Under the arrangement, ByteDance’s stake in the US venture would fall below 20%, with Americans holding six out of seven board seats, and ByteDance excluded from security oversight.

The deal comes amid ongoing US-China tensions and follows a law requiring ByteDance to divest TikTok’s US operations or face a ban.

President Trump plans to extend the deadline for the sale by 120 days, and sign an executive order to approve the transaction this week.

It remains unclear whether US lawmakers will accept the proposed algorithm arrangement, or if the technical separation from ByteDance is fully achievable.

🔗 Source: Bloomberg

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