2024 file photos from Tiktok’s office in Culver City, California. The fate of popular social apps can be decided in the coming days as buyers are urging them to comply with federal laws of selling Chinese ownership. Mario Tama/Getty Image hides captions
Toggle caption
Mario Tama/Getty Images
The Trump administration is considering an agreement that potentially resolves Tiktok’s legal uncertainty, which includes leasing the app’s algorithm from Beijing-based owner Baitedan, according to anyone directly involved in a speech that is not permitted to speak publicly.
Under the plan, a new US entity will be created, led by software giant Oracle. Compensation is expected to hold minority stakes.
Sources say that the proposed lease algorithms is controversial in the White House. There is debate among the Chinese Hawks as to whether the plan will truly remove the ordinance from the operational control of the app. However, the move could circumvent the need for China to approve the transaction the moment the Trump administration announces a 34% tariff on Chinese products.
Trump has imposed a Saturday selling date for its highly popular video service.
A surge in new bidders ahead of the deadline has shown interest, including those led by Tech Giant Amazon, but White House negotiators say the offer is not being taken seriously.
Oracle, which already provides the majority of backend technical support to Tiktok, will be tasked with overseeing new entities to ensure that the Chinese government does not have a backdoor to access data for millions of Americans. Those involved in negotiations with Tiktok said the dominant focus of the speech was the security of the user’s personal data rather than the algorithm.
“The algorithm doesn’t seem as scary as Washingtonians as they used to be. The bigger concern is data security,” he added last Wednesday, adding that “it looks like Project Texas 2.0.”
This is a reference to a plan that was tapped when the Austin-based Oracle becomes a custodian of Tiktok data and first took shape in Trump’s first term, conducting regular audits of the app’s algorithms. The plan, which stagnated without final approval during the Biden administration, included a “killswitch” that allowed US officials to close the platform if the national security benchmark was not met.
The new version of the Oracle-driven arrangement, which includes leases of the algorithms first reported by the Washington Post, does not include the Kill Switch option.
White House press director Karoline Leavitt refused to comment on the Oracle Plan, but told NPR “If a Tiktok deal is announced, it will come directly from President Trump.”
The contract will provide relief to Tiktok in a bumpy year. Federal law came into effect in January, banning the nationwide viral video app unless it is split from the Beijing technology giant pilgrimage.
Congress passed a ban in 2024 with overwhelmingly bipartisan support for the national security fear that apps used by more than half of Americans should not be controlled by China.
The app has been dark for 14 hours starting the evening of January 18th, just before the ban was scheduled for effectiveness. But after Trump took office, he flicked the next day after he promised to sign an order delaying the ban.
On inauguration day, Trump signed an executive order pushing back the start of the 75-day ban, pledging immunity to other tech companies that provide back-end services to apps such as Apps and Google. The extension is set to expire on April 5th.
Legal experts say Trump delays will not halt the ban. In other words, it is technically illegal for Tiktok to operate in the United States with ties with China. But Trump and his administration’s move, Tiktok and his service providers, ensure that US authorities will not prosecute anyone under the law.
Since January, Trump has said there is “great interest” from potential buyers of Tiktok, an app that has been used by over 170 million Americans and is a valuable asset for those who want to influence an entire generation of young internet users who flock to their services every day.
NPR reported in January that cloud computing company Oracle was tapped as a top candidate by the White House to lead a coalition of other investors to acquire a substantial stake in Tiktok’s US business.
Oracle is run by billionaire Republican donor Larry Ellison, who has long been a close ally of Trump.
