Trump Brings in Oracle to Manage the TikTok Algorithm in US

Core Viewpoint - The White House is eager to finalize a deal involving TikTok, with Oracle as the lead company alongside private investors, focusing on algorithm management and data control [1][3][10]. Group 1: Deal Structure and Participants - Oracle is positioned to own TikTok in partnership with private investors, indicating a shift towards US ownership [1][3]. - The algorithm for TikTok will either be rewritten or licensed, addressing previous concerns about data management [1][10]. - The involvement of multiple private investors complicates strategic decision-making, especially in the context of AI advancements [2][10]. Group 2: Leadership Changes at Oracle - Oracle has announced a leadership transition, with Saffra Catz being succeeded by two co-CEOs, one of whom oversees Oracle Cloud Infrastructure, crucial for the TikTok deal [3][5]. - This change reflects a move towards younger leadership, potentially aligning with the company's focus on AI and cloud services [4][5]. Group 3: Competitive Landscape and Challenges - Competitors like YouTube and Instagram are benefiting from TikTok's uncertainty, as creators explore alternative platforms [6][7]. - The focus in the industry has shifted from recommendation algorithms to leveraging AI capabilities based on available data [7][8]. - Smaller players, such as Snapchat, may struggle to compete due to limited infrastructure for developing large language models [9]. Group 4: Regulatory and Operational Considerations - The transaction is complex due to US laws mandating TikTok's sale to US owners while prohibiting ByteDance from any operational role [10][11]. - China's laws restrict the export of sensitive technologies, complicating the disentanglement of TikTok from ByteDance [11]. - Oracle's hosting of TikTok has been ongoing, suggesting a level of operational control that may appease regulators [12]. Group 5: Future Leadership and Strategy - Uncertainty remains regarding the future leadership of TikTok USA, with no confirmed CEO or CFO as the transaction is not finalized [12][13]. - The focus on algorithm development may overshadow opportunities in large language models, which could be pivotal for TikTok's future [14].