As TikTok’s future in the U.S. still hangs in the balance, Oracle has emerged as a leading contender to become the video-sharing platform’s U.S. partner, addressing national security concerns tied to its Chinese ownership.
The partnership would focus on securing U.S. user data and operational elements, but it would leave TikTok’s core algorithm, which powers its popular For You feed, under the control of Chinese-owned ByteDance.
Oracle has been a tech partner for TikTok for some time, providing data processing capabilities and helping to localize TikTok's U.S. user data.
According to recent reports by Bloomberg, Oracle is now in talks to play a larger role, assisting in the oversight of TikTok’s U.S. operations. The company would vouch for the safety of user data by ensuring that no backdoors are left open for Chinese influence, aligning with the "Protecting Americans from Foreign Adversary Controlled Applications Act" passed in January 2025.
However, Oracle’s involvement has stirred concerns, as the deal would allow ByteDance to maintain control over TikTok’s algorithm, something many lawmakers consider a security risk.
Legal and National Security Implications
The law clearly stipulates that foreign entities should not hold more than 20% of TikTok’s operations, nor should they have direct control over content recommendation algorithms or data sharing.
While Oracle’s involvement addresses the data security element, the proposal falls short in ensuring complete control over the algorithm, something that U.S. lawmakers and national security experts view as a critical issue.
ByteDance’s reluctance to sell or restructure its algorithm adds to the complexity of this deal, making it unclear whether Oracle’s involvement alone will be sufficient to meet the legal requirements.
Oracle’s Role in Data Security
Oracle’s tech infrastructure could play a pivotal role in safeguarding U.S. user data. Under the “Project Texas” initiative, Oracle already hosts American users’ data in secure U.S.-based servers, preventing ByteDance employees in China from accessing it.
As part of the new proposal, Oracle would continue to monitor this data and provide assurances to U.S. authorities that it is protected from any foreign influence. However, even with these measures, questions remain about whether this arrangement fully satisfies the concerns raised by the government regarding the app’s potential for misuse by China.
TikTok’s Pressure and the April 5 Deadline
TikTok faces a rapidly approaching deadline of April 5, 2025, to comply with U.S. regulations or risk facing a national ban.
The U.S. government has been clear that any agreement to keep TikTok in the country must ensure that ByteDance, TikTok’s Chinese parent company, does not maintain control over the app’s operations or user data. Oracle has stepped in as a potential partner, offering a proposal to oversee TikTok's U.S. data while ByteDance retains control of the algorithm—a key point of contention.
Vice President JD Vance has expressed optimism that a deal will be reached by the deadline, though he acknowledged that legal and logistical hurdles could push the final agreement beyond April 5.
Vance said, highlighting the urgency of finalizing the deal before the deadline. As negotiations with Oracle intensify, the future of TikTok in the U.S. hangs in the balance.
The Debate Over the Algorithm
At the heart of the discussions is TikTok’s algorithm, a critical component that shapes the platform’s addictive and engaging experience. Despite Oracle’s potential role in overseeing user data, ByteDance’s continued control over the algorithm has raised red flags for many in Congress.
Some lawmakers argue that the algorithm’s design could still be influenced by Chinese officials, making TikTok a potential tool for propaganda and espionage. As of now, ByteDance has remained firm in its stance, stating that it will not sell or relinquish control over the algorithm, making the resolution of this issue a sticking point in the ongoing negotiations.
Challenges and Potential Obstacles
While Oracle seems like a natural partner for TikTok, the deal faces several obstacles.
- First, ByteDance’s insistence on keeping control of its algorithm presents a major barrier to meeting U.S. legal requirements.
- Second, concerns about national security could persist even with Oracle’s involvement, especially if critics feel that the arrangement does not adequately eliminate foreign influence.
- Lastly, the Chinese government’s reluctance to approve a sale or transfer of control adds another layer of complexity, as Beijing’s stance on TikTok’s future in the U.S. remains uncertain.
Where Does TikTok Go From Here?
As the deadline for TikTok’s compliance with U.S. regulations looms, Oracle’s potential partnership with the platform could provide a way forward for both TikTok and the U.S. government.
However, the deal is not without its challenges, especially regarding ByteDance’s continued control over TikTok’s algorithm. As discussions intensify, it remains to be seen whether a resolution can be reached that satisfies both national security concerns and the interests of all parties involved.
