Tiktok Divestment Plan: Oracle To Secure Video Platform's US Algorithm As Part Of Trump's Deal

(MENAFN- Live Mint) TikTok divestment plan: Big tech company Oracle Corp. is set to oversee the security and assist in re-creating a US version of TikTok's algorithm under a potential divestment deal between the Chinese firm ByteDance and a consortium of American investors, reported the news agency Bloomberg, citing a White House official aware of the development on Tuesday, 23 September 2025.

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According to the agency report, the arrangement which was outlined on Monday seeks to ensure that the American buyers control TikTok 's recommendation software in the United States after the divestment move from the Chinese parent company.

Owners of the US-based TikTok would lease a copy of the algorithm from ByteDance that would then be retrained“from the ground up” with Oracle's oversight, reported the news agency, citing an official aware of the development.

According to the report, the full American buyers group has not yet been finalised, but the US venture of TikTok will be majority-owned by US investors.

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The data of the American people would be stored in a secure cloud managed by Oracle to keep its control out of reach of foreigners, including China, the official told the news agency.

The news report also highlighted that ByteDance would not have access to information on TikTok's US subscribers or control over the algorithm in the US.

The arrangement will also allow Oracle to see how the algorithm is behaving while the new US TikTok entity operates and controls it, the White House official told reporters.

According to current US law, TikTok's sale forbids ByteDance from any operational role in a new US version of the mobile application, including with the software.

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However, the news report also highlighted that it is still unclear whether lawmakers who backed a qualified divestiture will accept the algorithm plan and whether the approach to fully disentangle TikTok from ByteDance is technically feasible.

Oracle will work with the US government on a wide range of issues including algorithm retraining, application development and source code review, the official told the news agency.

The news report also highlighted that US President Donald Trump plans to sign an executive order this week to formalize his approval of the transaction, however the regulatory reviews are still yet to be cleared from both sides, as per the White House official.

“The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China's laws and regulations and takes into account the interests of both sides”, said China's foreign ministry, cited in the agency report.

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