In a significant development for the popular social media platform, TikTok’s recommendation algorithm is slated to undergo a complete overhaul, being rebuilt and trained exclusively on data from its US users. This strategic realignment is a key component of an agreement aimed at securing TikTok’s continued presence in the United States.
According to a White House official, the technology giant Oracle will be responsible for auditing and operating TikTok’s recommendation system through a newly formed joint venture. This venture will be supported by US investors, fulfilling critical requirements for the app’s sale and operation within the country.
The agreement comes in the wake of President Donald Trump’s previous directive that TikTok’s Chinese parent company, ByteDance, must sell its US operations or face a ban. While the deal reportedly has China’s approval, the specifics of this approval and the regulatory steps China will take remain to be seen.
White House officials have expressed optimism about the arrangement, framing it as a victory for both TikTok’s American user base and the nation’s broader interests. President Trump is expected to issue an executive order detailing the compliance measures with US national security demands and outlining a 120-day period for the deal’s finalization.
This initiative builds upon the existing ‘Project Texas,’ which already stores US user data on Oracle servers, a measure implemented to mitigate concerns about potential Chinese government access to sensitive information. The new deal, however, proposes a more comprehensive US-centric approach, involving direct oversight of the app’s source code and the recommendation system itself.
Industry analysts, such as Jasmine Enberg of eMarketer, note that such substantial changes, particularly to the algorithm and content delivery, could impact user behavior and the app’s overall valuation. Enberg suggests that any divergence from the existing algorithm, especially if it limits access to global content for US users, might compromise the user experience and potentially affect creators and investors.
The involvement of Oracle, a major player in cloud computing and AI infrastructure, along with private equity firm Silver Lake, underscores the significant financial and technological implications of this agreement. The White House has emphasized the inclusion of patriotic investors and cybersecurity experts on the new venture’s board to ensure robust governance.