Oracle Takes Control of TikTok’s Algorithm for US Users

Oracle may be tasked with providing security safeguards for a new US version of TikTok’s algorithm, a move that could significantly expand Oracle’s influence in the tech and AI space.

According to a report by Bloomberg, Oracle co-founder, chairman, and CTO Larry Ellison laid out his ambition to make the company a central force in AI inference — an opportunity he described as a potential “multi-trillion-dollar” business.

US-only TikTok algorithm

The US government is pushing to create a secure, independent version of TikTok to address concerns about its China-based parent company, ByteDance. Under a proposal outlined on Sept. 22, ByteDance would retain ownership of TikTok globally but develop a duplicate algorithm specifically for American users.

This plan follows national security concerns around the app, which has 150 million US users. On Sept. 19, ByteDance publicly thanked both President Donald Trump and Chinese President Xi Jinping for their efforts to keep TikTok available in the US, pledging to comply with local laws.

Trump confirmed that he had spoken with Xi, noting that both leaders supported exploring a separate US TikTok entity. However, China’s foreign ministry signaled that no final agreement had been reached, emphasizing that any deal must comply with Chinese law and serve both sides’ interests.

Oracle’s security and infrastructure role

If approved, Oracle would be central to the US TikTok spinoff. According to a White House official cited by Bloomberg, Oracle would be responsible for preventing “improper manipulation or surveillance” by separating US TikTok from ByteDance systems.

The company already provides cloud services for TikTok, hosting user data in the US and abroad. The new plan would expand Oracle’s role to include:

• Storing American user data securely in its cloud.
• Retraining TikTok’s algorithm to operate independently.
• Overseeing application development and reviewing source code in collaboration with the US government.

Oracle is also part of an investor group — including Andreessen Horowitz and Silver Lake — that would control the joint venture operating the American TikTok.

Challenges ahead

Despite momentum, the divestiture plan could still face resistance from US lawmakers wary of national security risks. The final outcome remains uncertain, but Oracle’s deepening involvement with TikTok underscores both its growing influence in consumer technology and its ambition to lead in the AI era.