The U.S. government has confirmed one of the most sensitive elements of the TikTok divestment deal: its content recommendation algorithm will be operated on American soil and overseen by Oracle. The move aligns with the “Ban-or-Sale” law, passed in 2024, which requires TikTok to be separated from its Chinese parent company, ByteDance, over national security concerns.
According to a senior White House official, the agreement will establish a U.S.-based joint venture controlled by a consortium of predominantly American investors and governed by a majority-American board. Partners reportedly include Oracle, Silver Lake, and Fox Corp., alongside funds previously tied to ByteDance and new international investors. ByteDance itself is expected to retain less than a 20% stake in the U.S. entity.
CNN reports that TikTok’s underlying algorithm code will be handed over to the new owners, reviewed, and retrained exclusively with U.S. user data, with Oracle tasked with ongoing monitoring to prevent manipulation.
It remains unclear whether users in the United States will need to download a separate version of TikTok once the transition is complete.
President Donald Trump is expected to sign an executive order this week formally recognizing the deal as a valid divestment, granting a 120-day extension for regulatory approvals.
The transaction is expected to close in the first quarter of 2026.
