In an ongoing effort to address the legal uncertainties surrounding TikTok, the Trump administration is reportedly contemplating a proposal to lease the app’s algorithm from its Beijing-based owner, ByteDance. A person involved in the discussions, who opted to stay anonymous due to lack of authorization to speak publicly, revealed this information.
The outlined plan suggests the formation of a new U.S. entity that would be led by software giant Oracle, with ByteDance expected to maintain a minority stake.
This proposal has sparked debate within the White House, particularly among individuals concerned about China’s influence. There is skepticism over whether the arrangement effectively distances ByteDance from operational control. However, it could bypass the necessity for China’s approval amid the Trump administration’s recent announcement of a 34% tariff on Chinese goods.
President Trump has set a deadline for TikTok to sell its operations by Saturday. Amid this, various new parties have expressed interest in acquiring the app, including tech giant Amazon; however, the White House’s negotiators are reportedly not taking these bids seriously.
Oracle, which already provides majority of TikTok’s backend technical support, would oversee the new entity to ensure there are no “backdoors” for Chinese government access to American user data. The negotiations’ focus, according to the source, revolves largely around data security rather than control over the algorithm.
The new arrangement, which was initially reported by the Washington Post, does not include the previously discussed “kill switch,” a contingency plan that had been suggested to allow U.S. officials to shut down the app for national security reasons during Trump’s first term. This kill switch was not approved during the Biden administration and is notably absent from the new reporting.
White House Press Secretary, Karoline Leavitt, declined to comment on the Oracle plan, indicating that any TikTok deal announcement will come directly from President Trump.
A resolution would ease the situation for TikTok after a turbulent year. A federal law, effective January, bans the app unless it separates from ByteDance, amid national security concerns.
Despite attempts to challenge the ban, the Supreme Court upheld the law, resulting in a temporary shutdown of the app just before the ban. President Trump, however, signed an executive order delaying the ban by 75 days, assuring service providers like Apple and Google immunity, an extension set to expire on April 5.
Legal experts note that these delays do not invalidate the ban, but Trump’s actions have convinced TikTok and its partners that they will not face prosecution, allowing the app to continue its operations despite being in violation of federal law. Since January, Trump has mentioned substantial interest from potential buyers of TikTok.
In January, NPR reported that Oracle, a company led by Larry Ellison, a billionaire and prominent Republican donor, was identified by the White House as a strong contender to lead a coalition acquiring a significant stake in TikTok’s U.S. operations.