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U.S. Says TikTok’s American App Will Run Oracle-Managed Copy of Algorithm

The plan establishes a U.S.-controlled joint venture that officials say satisfies national-security rules pending final approvals.

Overview

  • The U.S. entity will operate a copied recommendation engine fully inspected, retrained on U.S. user data, and continuously monitored to prevent unauthorized influence.
  • Oracle will secure the system and host U.S. data on domestic servers, with Oracle and Silver Lake expected to take equity in the venture.
  • The restructured company will have a majority-American board with six of seven seats held by U.S. directors, and ByteDance’s stake would drop below 20%.
  • President Trump is expected to issue an executive order this week declaring the arrangement meets national-security requirements, with final terms and approvals still pending.
  • Officials said the U.S. government will hold no ownership or board seat, while analysts warn performance and ad spending could wobble as the algorithm learns from only U.S. data.