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U.S. Sets TikTok Overhaul: Oracle to Safeguard U.S.-Hosted Copy of Algorithm as ByteDance Stake Falls Below 20%

The White House presented a structure intended to satisfy the 2024 law by isolating TikTok’s U.S. recommendation system under Oracle oversight.

Overview

  • Washington says TikTok’s U.S. service will run on a copied recommendation algorithm housed in the United States with no access for ByteDance or China.
  • Oracle will host American user data, inspect and retrain the algorithm on U.S. data, and provide continuous monitoring to detect unauthorized influence.
  • A new U.S.-based joint venture will control operations, with a majority of investors and six of seven board seats held by Americans as ByteDance drops below 20%.
  • The administration says the government will take no ownership stake, hold no golden share, and have no seat on the new company’s board.
  • President Trump is expected to sign an executive order this week certifying the deal’s national‑security compliance, with Oracle and Silver Lake slated to be investors as analysts warn of potential algorithm performance and advertising pullbacks.