Trump Brings in Oracle to Manage the TikTok Algorithm in US

Deal Structure & Regulatory Landscape - Oracle is positioned as the lead company to own TikTok, alongside other private investors, with the algorithm potentially being rewritten or licensed [1] - The involvement of multiple private investors raises questions about who will determine TikTok's strategy in the age of AI and LLMs [2] - The deal mandates TikTok's sale to US owners but forbids ByteDance from any operational role, while Chinese law restricts the export of sensitive technology like algorithms [10][11] - Regulators and Congress need assurance that Oracle has control over TikTok's data and algorithm to approve the deal [12] Leadership & Strategy - Oracle's CEO succession involves two co-CEOs, with one leading Oracle Cloud Infrastructure (OCI), which is crucial for the TikTok deal and other AI initiatives [3][5] - The focus might be too much on the algorithm, while the bigger opportunity lies in video-based Large Language Models (LLMs) [14] - Long-term strategy should prioritize product development and monetization, rather than solely focusing on profitability and return on investment [10] Competitive Dynamics & Future Trends - Uncertainty around TikTok has led creators to move to alternative platforms like YouTube, Instagram, and Snapchat [6] - The focus is shifting from recommendation algorithms to AI based on data, giving companies with strong data infrastructure an advantage in developing LLMs [7][8] - Smaller players like Snapchat may struggle due to a lack of infrastructure to train their own LLMs based on their data [8]