• Oracle is in talks with the White House to take over the US’s TikTok operations.
• Concerns remain over ByteDance’s continued influence and the security of user data.

Oracle is in advanced discussions with the White House about taking over TikTok’s US operations, though questions remain about the influence of the app’s Chinese parent company, ByteDance, according to three sources familiar with the matter.

Vice President JD Vance and national security adviser Mike Waltz are leading the negotiations, following President Donald Trump’s directive to secure a deal that would bring TikTok under US ownership. Several senators have requested to be briefed on the talks, while one source described the discussions as moving toward a possible agreement.

The proposed deal comes amid ongoing concerns from lawmakers and national security officials about data security. TikTok’s Chinese ties have been under scrutiny since Congress passed a bipartisan ban on the app last year, citing fears that ByteDance’s control over the app’s algorithm and user data could allow the Chinese government to access sensitive information or influence content.

Oracle emerges as the leading contender

Oracle appears to have an advantage over other potential partners for TikTok’s US operations. ByteDance reportedly favours Oracle for the role, and the company’s existing involvement in managing TikTok’s US data under “Project Texas” makes it a familiar player in the conversation.

Under the proposed deal, Oracle would be responsible for overseeing American users’ data and ensuring that it is inaccessible to the Chinese government. However, a source involved in the negotiations stated that such guarantees could be difficult to enforce.

“If the Oracle deal moves forward, you still have this [algorithm] controlled by the Chinese,” the source familiar with the matter told POLITICO. “That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data.”

This raises questions about whether the US government would have meaningful oversight over TikTok’s algorithm and data infrastructure — or whether the app’s core technology would remain under the influence of ByteDance.

Models for future TikTok operations

Several situations could arise based on how the deal is structured:

• Algorithm kept in China – If ByteDance keeps ownership of the algorithm, security concerns may persist even if Oracle handles the data.
• Algorithm moved to Oracle Cloud – Moving the algorithm and data storage to Oracle servers could improve security, but it might disrupt TikTok’s core functionality or hinder the app’s capacity to adapt to global user trends.
• Separate Chinese and US algorithms – If TikTok’s algorithm is split between Chinese and US operations, the app’s user experience could diverge between regions. However, this could also reduce the risk of cross-border data access.

Lawmakers are divided on whether Oracle’s involvement would be enough to address national security concerns. The issue reflects broader tensions between the US and China over technology and data sovereignty.

Security oversight and political pressure

TikTok’s data security has been monitored by HaystackID, an independent inspector, which reported in February that it found no evidence of unauthorised data access or internal threats. Concerns, however, remain over ByteDance’s capacity to influence TikTok’s algorithm and content recommendations.

The proposed deal has been compared to “Project Texas 2.0,” a reference to the original agreement in which TikTok agreed to store US user data on Oracle servers in Texas. That arrangement also gave Oracle the authority to look into TikTok’s source code for security vulnerabilities. Despite those measures, lawmakers and the Biden administration expressed concerns that ByteDance’s control over the app created ongoing security risks.

Political dynamics and regulatory hurdles

The urgency to secure a deal stems from an executive order signed by President Trump in January, which gave ByteDance 75 days to divest its US operations or face a ban. TikTok briefly went offline in January after ByteDance failed to meet the initial deadline, and the Supreme Court later upheld the congressional ban.

Trump has publicly supported Oracle’s involvement, suggesting that Larry Ellison, Oracle’s founder and a longtime Trump supporter, could play a key role in the deal. Ellison is also involved in “Project Stargate,” a $500 billion AI infrastructure initiative that includes OpenAI, SoftBank, and MGX.

Trump’s position on TikTok has shifted over time. While his administration initially sought to ban the app over national security concerns, Trump later embraced TikTok as a campaign tool after gaining support from younger voters. The shift followed a meeting with Jeff Yass, a Republican donor and major ByteDance shareholder.

Vance has expressed confidence that a TikTok deal will be reached by the April 5 deadline. Trump has indicated that his administration is in discussions with “four different groups” about a potential agreement.

China’s position and influence over the deal

ByteDance’s ability to finalise a deal ultimately rests with the Chinese government. Beijing has signalled opposition to any forced sale of TikTok’s US operations. In March, Chinese Commerce Ministry spokesperson Shu Jueting said the government would “firmly oppose” any move to force ByteDance to divest its US business and that any transaction would require government approval.

Chinese officials have framed the issue as an attempt by the US to exert control over a successful Chinese tech company. Foreign Ministry spokesperson Wang Wenbin accused Congress of using “hegemonic moves” to target TikTok, while another official stated that any transaction should follow “market principles.”

If ByteDance retains any control over TikTok’s algorithm or data infrastructure, it could weaken the perceived security benefits of the deal. On the other hand, giving Oracle complete authority could provoke Chinese regulators, who may see it as an attempt to weaken China’s impact on the global tech market.

Broader implications

The TikTok deal could have far-reaching repercussions for global tech governance and the future of cross-border data security. It also reflects broader US-China tensions over technological dominance and the role of state influence in regulating private tech companies.

While lawmakers push for greater oversight, Oracle’s potential involvement raises questions about whether entrusting a private US company with TikTok’s data infrastructure would fully resolve security concerns — or simply shift control from one government to another.