Oracle Nears Deal to Secure TikTok's U.S. Operations

Oracle Corporation is reportedly approaching a significant agreement that would allow it to guarantee the security of TikTok's U.S. operations. According to Bloomberg, this deal would involve Oracle taking a minor stake in the app's American entity while assuring that an updated version of TikTok would not include any vulnerabilities that the Chinese government could exploit.

Discussions about this proposal occurred within the Trump administration last week, highlighting the urgent need to address ongoing national security concerns regarding the app. However, the plan may still leave TikTok’s influential algorithm under the control of its Chinese parent company, ByteDance. Sources indicate that Chinese authorities are aware of the negotiations and are likely to approve only if they maintain complete control over the algorithm.

This development raises questions about the effectiveness of prior measures, such as Project Texas, initiated in 2022, which aimed to alleviate security concerns by routing U.S. user data through Oracle's servers. Despite these efforts, reports surfaced suggesting that access to U.S. user information remained available to Chinese employees, leading to skepticism from U.S. officials. An appeals court ruling last December underscored that TikTok had not satisfactorily addressed the government's apprehensions.

Since late 2023, Israeli lobby groups and the Anti-Defamation League have voiced concerns over TikTok's content dynamics, citing an overwhelming prevalence of pro-Palestinian content compared to pro-Israel views among Gen-Z users. This has fueled calls for restrictions on TikTok's access in the U.S., emphasizing the platform's influence on young Americans' perspectives. The outcome of Oracle's negotiations could play a pivotal role in determining social media's future in the United States.