Oracle, a technology firm, will assume a security role for new TikTok entities in the U.S. following a presidential agreement backed by Trump. This deal allows social media companies to continue operating within the country.
A senior White House official mentioned, “By being the security provider for this new entity, Oracle will have the ability to inspect and analyze its operations.”
The U.S. TikTok Investment Group consists of Oracle and private equity firm Silver Lake. Officials indicated that the full list of investors will be finalized before the transaction concludes. They anticipate that TikTok’s parent company will retain less than 20% ownership in its U.S. operations, in line with sales regulations established during the Biden administration.
As part of this arrangement, TikTok’s algorithm will undergo “retraining” and be managed by a U.S. joint venture.
The proposal states that the content recommendation algorithms will be thoroughly checked and retrained by the security provider to ensure the proper handling of U.S. user data, with continuous monitoring to prevent any misuse.
Trump remarked that Chinese President Xi Jinping had consented to a transaction that would allow TikTok to operate in the U.S., though this raised questions about the extent of the Chinese government’s involvement in the negotiations.
When probed about whether China had fully agreed to the deal, officials expressed confidence that regulatory approvals would be forthcoming.
They also noted there were no intentions for further discussions with the Chinese delegation.
Later this week, Trump is expected to issue an executive order affirming that the transaction aligns with U.S. national security concerns. Additionally, he will extend the suspension of enforcement for 20 more days, giving investors and TikTok time to refine the implementation documents.
Trump had previously delayed the enforcement of divestment or ban laws until December 16.
