SMRTR TechSep 22, 2025PYMNTS

Oracle to Create TikTok Algorithm in US ‘From the Ground Up’

SMRTR summary

Oracle will rebuild TikTok's algorithm "from the ground up" in the US as American investors led by Oracle, Silver Lake, and Andreessen Horowitz acquire an 80% stake in TikTok's US operations, while ByteDance retains a minority stake. Oracle will manage US user data in a secure cloud with safeguards against foreign access, including China. This restructuring addresses national security concerns that threatened to ban TikTok, with the US government expected to receive a multibillion-dollar fee for facilitating the deal.

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