TikTok US to operate with algorithm copy under oracle control

Tuesday 23 September 2025 - 07:03

By: Sahili Aya

TikTok US to operate with algorithm copy under oracle control

The American branch of TikTok will soon function independently from its Chinese parent company, ByteDance, using a copy of the platform’s current algorithm. According to US officials, the technology and data will be managed exclusively by Oracle, ensuring that Chinese authorities cannot access or influence the system.

The algorithm, which is at the heart of TikTok’s success in the United States, has been credited with keeping users engaged longer than on rival platforms such as Instagram or Snapchat. TikTok currently has more than 170 million users in the US.

Oracle, already responsible for hosting American user data, will oversee the new version of the algorithm. The company will conduct ongoing inspections and monitoring to prevent misuse or unauthorized manipulation.

A senior US official confirmed that President Donald Trump is expected to sign an executive order later this week to formalize the deal. Under the agreement, TikTok US will become a new joint entity with a majority of American investors and board members. ByteDance’s stake will be reduced to below 20%, while Oracle and investment firm Silver Lake will hold significant shares.

The US government itself will not have direct ownership or veto power in the new company. However, Trump has indicated that the US Treasury will receive a substantial commission from the transaction.

The restructuring aims to address Washington’s concerns over data security and foreign influence. While the market welcomed Oracle’s expanded role, experts warn that limiting the algorithm to American data may affect the quality of recommendations, potentially impacting advertisers.