SEPT 22 – TikTok’s algorithm – the technology that determines what users see in their feed – will be copied and retrained using US user data as part of a deal to secure the app’s future in the country.
A White House official said on Monday that TikTok’s recommendation system will be audited by tech giant Oracle, and operated by a new joint venture involving US investors in order to meet requirements for the app’s sale.
It comes after President Donald Trump said a deal to prevent the app’s ban in the US, unless sold by its Chinese parent company ByteDance, had been reached with China’s approval.
The BBC has approached ByteDance and TikTok for comment.
White House officials claim the deal will be a win for the app’s US users and citizens.
President Trump is expected to sign an executive order later this week on the proposed deal, which will set out how it will comply with US national security demands.
The order will also outline a 120-day pause to the enforcement deadline to allow the deal to close.
It is unclear whether the Chinese government has approved this agreement, or begun to take regulatory steps required to deliver it.
However, the White House appears confident it has secured China’s approval.
Data belonging to the 170m users TikTok says it has in the US is already held on Oracle servers, under an existing arrangement called Project Texas.
It saw US user data siphoned off due to concerns it could fall into the hands of the Chinese government.
A senior White House official said that under President Trump’s deal, the company would take on a comprehensive role in securing the entirety of the app for American users.
They said this would include auditing and inspecting the source code and recommendation system underpinning the app, and rebuilding it for US users using only US user data.
Patriotic investors
Oracle, which provides cloud computing infrastructure for a growing number of companies including ChatGPT-maker OpenAI, has been long rumoured to play a role in President Trump’s deal.
It recently reported a surge in demand among AI companies for its data centres, which helped push its stock dramatically higher and briefly made its co-founder and chairman Larry Ellison the world’s richest person.
Earlier this year, President Trump said he would like to see Mr Ellison buy TikTok.
Private equity firm Silver Lake, which has investments in companies including Manchester City football club owners City Football Group, was revealed to also be involved in the deal.
White House officials said the new joint venture controlling the app would be seeking patriotic investors and board members experienced in cybersecurity to oversee its operations.
They believe the value of the deal would likely amount to billions of dollars.
But Jasmine Enberg, principal social media analyst at eMarketer, said that changes to the way TikTok works for US users could risk putting them off the app or potentially lower its value for creators, brands and investors.
“Material (or even perceived) changes to the content, algorithm or app policies could prompt massive shifts in user behaviour,” she told BBC News.
By BBC
