US Seizes Control Over TikTok Algorithm, Oracle to Oversee Operations
Fundacion Rapala – The White House directly addressed the future of TikTok’s US operations by confirming that Oracle will supervise the platform’s recommendation algorithm. A senior official explained that the United States will take over control of the system as part of a new agreement. This move places the heart of TikTok’s technology under American oversight.
New Ownership Structure with US Majority
A new consortium of American investors will assume authority over TikTok’s US branch. The group will include a board of directors dominated by US citizens. With this structure, decision-making power shifts to American hands, a change designed to limit foreign influence and strengthen regulatory trust.
Why the Algorithm Matters
TikTok’s algorithm drives its global popularity by curating personalized content that keeps users engaged. Lawmakers in Washington believe the same technology could pose risks if foreign actors misuse it. They fear ByteDance, TikTok’s parent company in China, might manipulate the algorithm to influence American public opinion or fuel division.
Strict Provisions Against Cooperation
Congress passed legislation that bans cooperation between ByteDance and the new US-based entity. Lawmakers insist that ByteDance must surrender operational control of the recommendation system. This rule eliminates the possibility of direct input from the Chinese company, reinforcing America’s stance on protecting national security.
How the Algorithm Will Be Rebuilt
ByteDance will deliver a copy of the source code to the new ownership group. American engineers will retrain and redevelop the algorithm with data collected from US users. Oracle will monitor every step of the process, ensuring the system recommends content fairly and safely. These changes will affect only US users of TikTok.
Oracle’s Role in Safeguarding TikTok
Oracle will lead oversight efforts alongside private equity firm Silver Lake. Both companies will work with the consortium to guarantee transparency in TikTok’s operations. By acting as an independent supervisor, Oracle strengthens US control and reassures regulators that the app operates under American standards.
Potential Investors in the Consortium
The consortium will likely include US-based corporations and new investors. Reports suggest Fox Corp. may join, while President Donald Trump previously mentioned Michael Dell and the Murdoch family as possible stakeholders. Although the final list remains undisclosed, most investors will come from the United States.
ByteDance’s Reduced Ownership Stake
ByteDance plans to keep less than 20% of TikTok’s US division after the deal closes. This small share ensures the Chinese parent company cannot dictate operations. At the same time, ByteDance may still contribute technical expertise while leaving business decisions to the US consortium.
Awaiting Approval from Chinese Regulators
The agreement requires approval from Beijing before it can move forward. Despite this hurdle, White House spokesperson Karoline Leavitt expressed confidence, saying, “We are 100 percent certain this deal will succeed.” The final green light from China remains the last major obstacle to completion.
Trump Administration’s Timeline
President Donald Trump intends to sign an executive order soon to validate the deal as a legal divestment. To give regulators time, his administration will extend enforcement deadlines by 120 days. The current ban runs until December 16, 2025, which means the agreement could reach finalization in early 2026.
A Turning Point in Tech Regulation
The deal, once completed, will reshape the relationship between Washington and Beijing over technology. By seizing control of TikTok’s algorithm, the US demonstrates its determination to protect sensitive data and digital platforms from foreign influence. For TikTok, this transition opens a new chapter where transparency and American oversight guide its growth.