President Donald Trump is set to approve a proposed deal this week that would ensure TikTok’s U.S. operations are majority-owned by American investors and keep user data stored in a ‘trusted’ U.S. cloud, according to a senior White House official. The plan, which would require ByteDance to hold less than 20% of the stock, aims to resolve national security concerns while preserving TikTok’s global functionality for U.S. users. Oracle, a major U.S. technology company, will serve as TikTok’s trusted security provider, ensuring data protection and algorithmic independence from ByteDance’s control.
The deal would establish a new joint-venture company to manage TikTok’s U.S. operations under a board of directors composed of U.S. citizens with national security and cybersecurity credentials. Officials emphasized that the arrangement would prevent foreign adversaries, such as China, from accessing user data. The administration is touting the agreement as a way to maintain TikTok’s economic impact in the U.S., with projections of $178 billion in economic activity over the next four years and the preservation of thousands of U.S. jobs and businesses.
Under the terms of the deal, TikTok’s algorithm will be retrained and operated independently in the United States, away from ByteDance’s control. Oracle will oversee the retraining and monitoring of the U.S. algorithm to ensure content is free from improper manipulation or surveillance. The deal also preserves TikTok’s interoperability, allowing U.S. users to view content from around the world while ensuring their data is securely stored in the U.S. The administration plans to finalize the deal through an executive order, which would delay enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act for up to 120 days.
The proposed agreement follows months of negotiations and comes after last year’s passage of a law signed by former President Joe Biden that banned TikTok and similar apps controlled by foreign adversaries. Following a Supreme Court challenge, the law took effect on January 19, 2025, with a 90-day extension. The deal was delayed under Trump’s previous administration, which initially blocked enforcement of the law and later extended deadlines for TikTok’s divestment. The final approval of the deal marks a significant shift in U.S. policy on foreign technology companies and data security.