Trump Signs TikTok Deal: Oracle Takes Control, China Retains Algorithm Influence
US President Donald Trump has signed an executive order to transfer TikTok's ownership to US entities. The move aims to address national security concerns over the popular app's Chinese ownership. Oracle and a consortium of US investors will control 80% of a newly created US entity running TikTok's operations in the US.
The new entity will license TikTok's algorithms from ByteDance, which retains just under 20% ownership and remains the single largest shareholder. All US user data will remain on Oracle's servers in Texas. Six of the seven board seats in the new entity will be held by Americans, ensuring significant US influence.
However, China classifies personalized recommendation algorithms as sensitive technology, subjecting every export of updates or improvements to Chinese government approval. This could potentially give China residual control over TikTok's algorithms and allow it to use the app as a diplomatic tool. Despite this, a less competitive US version of TikTok might not be entirely negative, as it could make the app less addictive for US teenagers.
The new TikTok entity, with Oracle as a significant stakeholder, aims to address US national security concerns. However, the complex ownership structure and China's control over algorithm updates raise questions about the app's future and its impact on US users.
Read also:
- AI-Generated Humor Spreads on Gemini Nano Banana: Light-hearted Modifications Spark Concerns over User Privacy
- China is, unlike the United States, embracing technological progress rather than attempting to restrict it.
- Social media spat between Elon Musk and Sam Altman features their confrontation; discord revolving around business rivalry in relation to Apple
- Investment Opportunities: Three High-Yield Growth Shares to Expand Your Portfolio in August
