The Trump administration brokered a deal mandating that TikTok's algorithm be copied, retrained, and operated within the United States, utilising exclusively US user data. Oracle is set to audit the system, and a joint venture involving US investors will oversee its operations.
This agreement follows President Trump's statement regarding a deal to prevent a ban of the app in the US, conditional on its sale by its Chinese parent company, ByteDance. White House officials assert this deal will benefit US TikTok users and citizens. President Trump is anticipated to sign an executive order later in the week, detailing the deal's compliance with US national security requirements.
The order will also include a 120-day pause on the enforcement deadline to facilitate the deal's completion. The approval of the Chinese government remains uncertain, as do any regulatory steps required from their end. The White House, however, seems confident in having secured China's agreement. Data from TikTok's reported 170 million US users is already stored on Oracle servers under the existing "Project Texas" arrangement. This project was initiated to address concerns about US user data potentially falling into the hands of the Chinese government.
According to a senior White House official, the agreement establishes a comprehensive role for the company in securing the entire app for American users. This encompasses auditing and inspecting the source code and recommendation system powering the app, and rebuilding it for US users, using solely US user data.
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