Oracle to Secure and Recreate TikTok’s Algorithm for U.S. Version Under Sale Agreement

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Monday, Sep 22, 2025 6:32 am ET1min read
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Aime RobotAime Summary

- Oracle and TikTok agree to secure and recreate the app’s algorithm for a U.S. version under a sale deal.

- Oracle will manage data infrastructure and develop a U.S.-specific algorithm compliant with U.S. security standards.

- The move addresses U.S. concerns over data practices and ensures a separate governance structure from TikTok’s Chinese parent company.

- The deal involves restructuring ownership to U.S. investors, with Oracle focusing on secure data architecture and compliance.

Oracle Corp. has entered into a strategic agreement to secure and recreate TikTok’s algorithm for a U.S. version of the app, as part of a broader deal to sell the platform to American investors. The move is aimed at addressing surrounding the data practices and algorithmic operations of the short-video social media platform.

Under the terms of the agreement, OracleORCL-- will take responsibility for securing TikTok’s data infrastructure and developing a new, independently managed algorithm tailored for the U.S. market. This approach ensures that the core technology driving user engagement and content recommendations will be operated within a framework that aligns with U.S. .

The deal marks a significant step toward resolving long-standing concerns from U.S. authorities regarding the handling of user data by foreign entities. By taking control of the algorithm, Oracle will ensure that the U.S. version of the platform operates with a distinct operational and governance structure, separate from the original version managed by its Chinese parent company.

The arrangement is not a straightforward acquisition but rather a complex restructuring that includes the transfer of ownership to American investors. Oracle’s role is both technical and strategic, focusing on the secure implementation of a new data architecture and the development of an algorithm that adheres to U.S. and national security mandates.

This initiative reflects Oracle’s expanding involvement in high-stakes technology deals with significant . The company has previously demonstrated its capacity to manage large-scale, mission-critical systems, and this engagement reinforces its position in the market as a trusted infrastructure provider for sensitive operations.

The U.S. version of TikTok is expected to retain its core features and user experience while operating on a newly established platform infrastructure. Oracle’s implementation will ensure that data flows, access controls, and algorithmic decision-making are subject to U.S. regulatory oversight.

As the deal moves toward implementation, the new structure sets a precedent for how multinational tech platforms can be reconfigured to meet the regulatory and security expectations of specific national markets. This approach may influence future negotiations involving other global platforms seeking to operate in high-regulation environments.

The timeline for the full deployment of the U.S.-specific version is tied to the completion of the broader transaction with American investors and the finalization of regulatory approvals. Oracle’s involvement is expected to play a central role in meeting compliance requirements and ensuring a seamless transition for U.S. users.

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