Oracle to Create TikTok Algorithm in US ‘From the Ground Up’
News Summary
Oracle is reportedly set to recreate and secure the United States version of TikTok’s algorithm "from the ground up." This move is part of a deal for the Chinese-owned video-sharing platform to be sold to a group of U.S. investors, with the new owners leasing a copy of the algorithm from ByteDance that Oracle will retrain. U.S. user data will be housed in a secure cloud managed by Oracle, with controls designed to prevent access by foreign adversaries, including China. ByteDance will reportedly not have access to U.S. subscriber information or control over the algorithm. This arrangement follows a national-security-focused law passed last year that mandated ByteDance divest TikTok, a deadline President Trump had extended multiple times.
Background
TikTok's parent company, ByteDance, faced a U.S. government ban threat in 2024, mandating a divestment of its U.S. operations due to national security concerns, particularly regarding data security and potential Chinese government access. President Trump had subsequently granted ByteDance multiple extensions to find a new buyer, partly crediting the platform's young user base with his re-election victory in 2024. The U.S. government has consistently aimed to ensure that TikTok's U.S. user data and algorithmic control are entirely outside the influence of the Chinese company, ByteDance. Previous plans had considered migrating U.S. users to a new, separate app codenamed "M2," but the current framework opts to preserve the existing front-end application while completely re-engineering its backend infrastructure and ownership structure.
In-Depth AI Insights
What are the deeper implications of this deal for the U.S.-China technology rivalry? - This transaction sets a significant precedent where the U.S. not only mandates divestment of foreign tech assets but also directly intervenes in the fundamental technology (algorithm) reconstruction. - For Chinese tech companies, this sends a clear signal that significant market penetration in the U.S. could lead to forced localization of data sovereignty and algorithmic control. - It may accelerate China's push for indigenous tech development to reduce external market reliance and could encourage other nations to adopt similar