President Trump is set to approve a deal this week that would put TikTok’s U.S. operations under majority American ownership while placing all user data in a secure U.S.-based cloud, according to a senior White House official.
Under the agreement, TikTok’s U.S. business will operate as a new joint-venture company, with ByteDance limited to under 20% ownership. The board of directors will include seven members, most of them U.S. citizens with national security and cybersecurity expertise, though ByteDance will be allowed to appoint one seat.
Oracle will serve as the platform’s trusted security partner, monitoring data storage and overseeing operations in cooperation with the U.S. government. All American user data will be housed in a dedicated Oracle-run cloud, isolated from foreign access and protected by advanced security controls.
The deal also requires TikTok’s algorithm for U.S. users to be retrained, secured, and operated entirely outside of ByteDance’s control. ByteDance will duplicate the algorithm and lease it to the new joint-venture, with Oracle responsible for retraining and continuously monitoring it to prevent manipulation or surveillance.
Officials said the arrangement will allow TikTok to remain interoperable globally while ensuring U.S. users’ data stays protected and the American platform independently enforces its own terms of service against harmful content. Trump is expected to sign an executive order approving the agreement later this week.
