Oracle is in talks with the White House to manage TikTok’s US operations. The deal aims to address concerns about the app’s data and its ties to ByteDance, the Chinese parent company. While talks are progressing, sources say concerns remain about ByteDance’s influence over TikTok’s algorithm and user data.
Vice President JD Vance and National Security Advisor Mike Waltz are leading the negotiations. Several senators are closely monitoring the deal. Despite optimism, one source said the talks are still moving forward, but national security issues remain unresolved.
Security Concerns and Oracle’s Role
If the deal proceeds, Oracle will manage US-based TikTok users’ data. Oracle would ensure the Chinese government cannot access this data. Some experts, however, doubt the effectiveness of these measures. Critics argue that ByteDance’s control over the algorithm could still allow data access.
TikTok’s data practices have been under heavy scrutiny for years. An audit by HaystackID, TikTok’s consultant, found no evidence of data misuse. However, many lawmakers, especially Republicans, still have concerns about TikTok’s ties to Beijing.
Project Texas 2.0: Addressing National Security
The deal, “Project Texas 2.0”, builds on a prior agreement where TikTok moved US user data to Oracle’s servers in Texas. Oracle also reviewed TikTok’s source code for security risks. Despite this, lawmakers and the Biden administration remain concerned about TikTok’s links to China.
Key lawmakers have requested briefings from Oracle on the deal’s security implications. The push to finalize the deal follows President Biden’s executive order giving ByteDance 75 days to sell its US operations or face a ban.
Political Dynamics and Business Tensions
The political landscape around TikTok has shifted since Trump’s attempt to ban the app. Although Trump initially wanted to ban TikTok, he later softened his stance. This change followed talks with Republican donor Jeff Yass, a major shareholder in ByteDance.
Trump has said his administration is in talks with four groups about a potential TikTok deal. Larry Ellison, Oracle’s founder, is considered a key player. Ellison is also involved in “Project Stargate”, an AI infrastructure project.
China’s Role and Regulatory Challenges
For the deal to move forward, ByteDance needs approval from China. The Chinese government has resisted forced sales of its tech assets and is unlikely to approve a sale to a non-Chinese company.
Chinese officials oppose the forced divestment of TikTok, accusing Congress of using “hegemonic” actions to seize control of the app. While Beijing’s stance remains unclear, regulatory approval from China is critical for the deal.
Deadline Looms: Will the Deal Be Finalized?
The April 5 deadline is approaching, and the Trump administration faces pressure to secure a deal or ban TikTok. TikTok briefly suspended operations in January after missing a prior sale deadline. The Supreme Court upheld the Congressional ban, increasing pressure on ByteDance.
Negotiations are ongoing, and it is unclear whether Oracle’s involvement will satisfy lawmakers’ concerns. If ByteDance retains control over TikTok’s algorithm or user data, Congress may push for further action.
