In a major step toward reshaping TikTok’s presence in the United States, the White House confirmed Monday that tech giant Oracle will serve as the security provider for a U.S.-based version of the app’s algorithm. The move is part of a broader agreement to transition TikTok’s American operations into a newly formed joint venture headquartered in the U.S.
A senior White House official stated that the new entity will feature a majority-American board of directors and will assume control over TikTok’s U.S. user data and algorithm. As part of the deal, a copy of the content recommendation algorithm will be transferred to the new venture, where Oracle will “fully inspect and retrain” it to ensure alignment with U.S. data security standards.
“It’s going to be fully inspected and retrained by the security provider on U.S. user data, and then it’s going to be operated by that U.S. entity,” the official said, underlining that the algorithm will be “continuously monitored” to prevent foreign influence.
This restructuring follows years of scrutiny from U.S. lawmakers who have expressed concerns over TikTok’s Chinese parent company, ByteDance, and the potential for data harvesting or political influence by the Chinese government.
Originally initiated under President Biden’s administration, legislation was passed requiring ByteDance to divest TikTok’s U.S. operations or face a nationwide ban. The current deal is seen as a solution that meets national security requirements while allowing TikTok to remain operational in the American market.
White House Press Secretary Karoline Leavitt confirmed that the new board will consist of seven members, six of whom will be Americans. Meanwhile, President Donald Trump, now serving a second term, is expected to sign an executive order this week finalizing the arrangement.
Trump also indicated that notable investors—potentially including Rupert Murdoch and his son Lachlan—may be involved in the new U.S.-controlled entity.
The agreement marks a significant development in the ongoing debate around data sovereignty, foreign tech ownership, and digital platform governance in the United States.
