Tiktok Algorithm at the Center of the Debate

Oracle, the U.S. tech giant, is set to lead the oversight of TikTok's algorithm and security in the United States, as part of a deal proposed by the Trump administration. The agreement aims to address long-standing national security concerns over the popular video platform's ties to its China-based parent company, ByteDance.

The final details of the agreement are still being negotiated, but the proposed framework includes a consortium of investors, including Oracle, the private equity firm Silver Lake Partners, and potentially media mogul Rupert Murdoch and computer pioneer Michael Dell. The U.S. government will not hold a stake in the new joint venture or have a seat on its board.

The deal is a significant step toward resolving the security debate surrounding TikTok's operations. An executive order from President Trump is expected to declare that the terms of the deal meet U.S. security requirements. China still needs to approve the framework, and any final agreement will require regulatory sign-off.

A central feature of the deal is a licensed copy of TikTok's recommendation algorithm. This is the code that keeps users scrolling through videos, and American officials have warned that it could be manipulated by Chinese authorities to shape content.

● Licensed Copy: The new U.S. joint venture would receive a licensed copy of the algorithm.

● "Retraining" with U.S. Data: An administration official stated that the U.S. version will be "retrained" with American data to ensure it behaves appropriately. This raises questions about whether the U.S. version of the app will feel different to users.

● No Visible Changes: White House press secretary Karoline Leavitt assured that the change in control will not affect the user experience, and users in the U.S. will still be able to view videos from other countries. However, analysts like Jasmine Enberg of eMarketer note that any changes, even subtle ones, could risk alienating the audience.

The deal highlights the roles of several key players in the tech and media world.

● Oracle: With its expertise in database software and cloud infrastructure, Oracle is positioned to review, monitor, and secure U.S. data.

● Silver Lake: The investment firm has a long history of tech deals, including past buyouts of Dell Computer and Skype.

● Potential Investors: In addition to Silver Lake, Michael Dell and Rupert Murdoch have been mentioned as potential investors. Other reports suggest venture capitalist Marc Andreessen may also be involved.

Under the new structure, ByteDance would retain a 20% or smaller stake in the joint venture. Its representation on the board would be limited to one person, who would be excluded from the app's security committee, ensuring U.S. investors maintain control.