Trump Approves TikTok Takeover: Oracle Takes Control of U.S. Algorithm

A major turning point in the TikTok saga. President Donald Trump has officially approved a deal that hands control of TikTok’s U.S. algorithm to Oracle. The agreement aims to strengthen U.S. national security and end years of debate over who controls American user data.

Oracle to retrain and oversee the algorithm Under the deal, Oracle will take full control of TikTok’s recommendation software in the United States. The algorithm will be rebuilt and retrained in a secure environment, with no access granted to ByteDance. All American user data will be stored in Oracle’s protected cloud systems. ByteDance will have no ability to interfere with the algorithm, code, data, or operations in the U.S. “Oracle will operate, retrain, and continuously monitor the U.S. algorithm to ensure content is not manipulated or abused,” the White House statement said.

A new American TikTok majority-owned by U.S. investors The deal establishes a new U.S. TikTok entity, majority-owned by American investors. ByteDance will hold less than 20% and will be allowed only one board seat, with no access to the security committee. Oracle will act not only as the operator but also as an investor—alongside funds such as Andreessen Horowitz and Silver Lake Management.

Political and economic tensions The agreement comes amid rising tensions between the U.S. and China. Congress has long warned that the Chinese government could use TikTok to influence public opinion. The new arrangement is designed to eliminate such risks. Trump, who returned to the White House after the 2024 elections, stated: “I approved the TikTok deal, and we are in the process of finalizing it. It was a very good discussion, including with President Xi Jlnping.” The deal builds on Oracle’s multibillion-dollar Project Texas, which already managed cloud hosting for U.S. data. Now Oracle’s role expands to include the algorithm itself and its future development.

Reactions and outlook Experts say the deal marks a significant shift—TikTok in the U.S. will, for the first time, operate fully independent from its Chinese parent company. Still, concerns remain about whether retraining the algorithm, based on a licensed version from ByteDance, will fully eliminate all security risks. Nonetheless, it represents a historic step that will reshape the future of TikTok in America—and possibly other apps with Chinese origins.

#TRUMP , #tiktok , #Oracle , #AI , #USChina

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“