New Deal for TikTok: US User Data to Adapt Algorithm

Mon Sep 29 2025 00:28:00 GMT+0300 (Eastern European Summer Time)

The TikTok algorithm is set to be retrained on US user data according to a deal announced under President Trump's administration, aimed at securing the app's operational future in the United States.

TikTok will adapt its algorithm using US user data as part of a strategic deal involving Oracle and US investors. This step is crucial for meeting US national security requirements and preventing the app's ban domestically. A new joint venture will oversee the app's compliance and operations.

TikTok's algorithm - the technology that determines what users see in their feed - will be copied and retrained using US user data as part of a deal to secure the app's future in the country.

A White House official stated that TikTok's recommendation system will be audited by tech giant Oracle and operated by a new joint venture involving US investors to meet the requirements for the app's sale.

This announcement follows President Donald Trump's statement that a deal to prevent the app's ban in the US, unless sold by its Chinese parent company ByteDance, has been reached with China's approval.

The BBC has approached ByteDance and TikTok for comment.

White House officials claim the deal will be a win for the app's US users and citizens. President Trump is expected to sign an executive order later this week detailing how the agreement will comply with US national security demands. The order will also outline a 120-day pause in enforcement to finalize the deal.

While it's unclear whether the Chinese government has authorized this arrangement, the White House expresses confidence regarding its approval.

Data from the 170 million US TikTok users is currently stored on Oracle servers as part of an existing arrangement known as Project Texas, addressing concerns about potential data misuse by the Chinese government.

A senior official highlighted that under President Trump's plan, the company will enhance security protocols for American users, including auditing the source code and recommendation system, and rebuilding it exclusively for US users.

Patriotic Investors

Oracle, renowned for its cloud computing services, has long been speculated to have a pivotal role in this deal. The company reported a surge in demand among AI firms for its data centers, significantly boosting its stock and briefly making its co-founder Larry Ellison the world's richest individual.

Earlier this year, President Trump showed interest in having Mr. Ellison acquire TikTok. Additionally, private equity firm Silver Lake, known for investments in companies like Manchester City owners, was revealed to also be part of the deal.

The new venture managing TikTok seeks patriotic investors and board members with cybersecurity expertise to supervise operations, with the deal's value potentially reaching billions.

Nevertheless, analysts caution that altering the app's core features and policies could deter users or diminish its value for creators and brands. Jasmine Enberg, principal social media analyst at eMarketer, indicated that significant changes to user experience could prompt shifts in user behavior.

The specifics of the deal remain unclear, but analysts warn that a US-only algorithm might disconnect US users from global content, negatively affecting user experience.

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