TikTok will rebuild its algorithm using only US user data under a new Oracle-led deal.
The agreement aims to secure the app’s future in America and address national security concerns.
TikTok’s robust recommendation algorithm will be copied and retrained solely on US user data as part of a deal designed to secure the app’s future in America, the White House confirmed on Monday.
The agreement places Oracle at the centre of TikTok’s US operations. The tech giant will audit TikTok’s source code and algorithm, and run the app under a new joint venture with US investors. The move follows President Donald Trump’s ultimatum that TikTok’s Chinese parent company, ByteDance, must sell its US operations or face a nationwide ban.
A White House official said the deal ensures TikTok complies with national security requirements, claiming it will be a “win for US users and citizens.” President Trump is expected to sign an executive order later this week, which will outline compliance measures and introduce a 120-day deadline extension to allow the sale to close.
TikTok already stores US user data on Oracle’s servers under Project Texas, a system created to prevent data access by the Chinese government.
The new deal would expand Oracle’s role to cover TikTok’s entire US operations, including auditing the recommendation system and rebuilding it exclusively with US user data. The platform claims to have 170 million users in the US, all of whom would be covered by the new system.
In addition to Oracle, private equity firm Silver Lake will participate in the joint venture, which is expected to be worth billions of dollars. White House officials said the company is seeking “patriotic investors” and cybersecurity-savvy board members to oversee its operations.
Trump has previously expressed support for Oracle co-founder Larry Ellison to play a central role in the deal. Ellison briefly became the world’s richest person earlier this year after Oracle’s stock surged on rising demand from AI companies.
While the deal could safeguard TikTok’s US operations, analysts warn it may also alter the user experience.
“Material or even perceived changes to the content, algorithm, or app policies could prompt massive shifts in user behavior,” said Jasmine Enberg, principal social media analyst at eMarketer.
She cautioned that if TikTok’s new US-only algorithm restricts exposure to global content, it could reduce its appeal for users, creators, and brands.
Although White House officials expressed confidence that China has approved the deal, it remains unclear whether Beijing has begun taking regulatory steps needed to formalize ByteDance’s compliance.
For now, the US administration maintains that the arrangement represents a comprehensive security solution, striking a balance between protecting American data and ensuring the app’s continued availability.
