WASHINGTON (AP) — Tech giant Oracle will spearhead United States oversight of the algorithm and security underlying TikTok’s popular video platform under the terms of a deal laid out this week by federal authorities.
The final details still need to be completed among several joint venture partners that will include Oracle, investment firm Silver Lake Partners and possibly two billionaires — media mogul Rupert Murdoch and personal computer pioneer Michael Dell. The Trump administration would not have a stake in the joint venture nor be part of its board, according to a senior White House official.
President Donald Trump is expected to issue an executive order this week that declares the terms of the deal meet security concerns laid out by the law, the senior White House official said. China still needs to sign off on the framework proposal, and any final deal would still require regulatory approval.
The proposal is aimed at resolving a long-running effort to wrest TikTok’s U.S. operations from its Beijing-based parent company, ByteDance, because of national security concerns.
For now, the two sides are progressing on a framework deal that calls for a consortium of investors, including Oracle and Silver Lake, to take over the U.S. operations of TikTok in a process that might not be completed until early next year under a timeline laid out by the Trump administration.
Under the current terms of the proposal, the new U.S. joint venture would receive a licensed copy of the recommendation algorithm that keeps TikTok users endlessly scrolling through clips on their smartphones. Oracle would review, monitor and secure U.S. data flowing through the service.
The algorithm has been a central issue in the security debate over TikTok. China previously maintained the algorithm must remain under Chinese control by law. Yet a U.S. regulation passed with bipartisan support said any divestment of TikTok must mean the platform cuts ties — specifically the algorithm — with ByteDance.
ByteDance is expected to have a 20 percent, or smaller, stake in the U.S. joint venture, whose board will be controlled by the U.S. investors. ByteDance will be represented by one person on the board, but that individual will be excluded from TikTok’s security committee.