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Oracle to Create TikTok Algorithm in US ‘From the Ground Up'
PYMNTS.com· 2025-09-22 19:08
Group 1 - Oracle is set to recreate and secure the U.S. version of TikTok's algorithm as part of a deal involving U.S. investors acquiring the platform from ByteDance [1][2] - The new ownership structure will allow U.S. investors to control TikTok's recommendation software, with Oracle retraining the algorithm from scratch [2][3] - U.S. user data will be stored in a secure cloud managed by Oracle, preventing access from foreign entities, including ByteDance [3][4] Group 2 - The deal involves a group of investors led by Oracle, Silver Lake, and Andreessen Horowitz, who will collectively hold approximately 80% of TikTok U.S. [4][5] - The U.S. government is expected to receive a multibillion-dollar fee for facilitating the transaction, raising concerns among legal and ethics experts [5][6] - The current plan differs from earlier proposals, as it maintains the existing app while restructuring the underlying infrastructure related to ownership, data, and algorithms [7]