TikTok's US Algorithm Retraining Deal Under Trump: Implications and Insights

Fri Sep 26 2025 12:59:50 GMT+0300 (Eastern European Summer Time)

The retraining of TikTok's algorithm on US user data under a proposed deal aims to secure the app's future in the states. This move, involving Oracle and US investors, raises questions about user experience and data security.

In a significant development concerning TikTok's operations in the US, a proposed deal under the Trump administration will see the app's algorithm copied and retrained using US user data. This initiative, aimed at preventing a ban on the app, includes oversight by tech giant Oracle and the formation of a joint venture with US investors. The implications for user experience, algorithm changes, and the potential involvement of patriotic investors indicate a complex future for TikTok in the US market.

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.

This comes after President Donald Trump stated 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.

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 and include a 120-day pause to the enforcement deadline to allow the deal to close.

However, it remains unclear whether the Chinese government has approved this agreement, or begun to take regulatory steps required to deliver it. Despite this uncertainty, the White House appears confident it has secured China's approval.

Under the current arrangement known as Project Texas, data belonging to the 170 million TikTok users in the US is already held on Oracle servers. This was implemented due to concerns that US data could fall into the hands of the Chinese government.

A senior White House official indicated that under Trump's deal, the company would take on a comprehensive role in securing TikTok for American users, including auditing and inspecting the source code and rebuilding it for US users using only US data.

Patriotic Investors

Oracle, a cloud computing provider for various companies including AI firms, has long been rumored to play a role in Trump's deal. The company has reported a surge in demand for its data centers, boosting its stock and temporarily making co-founder Larry Ellison the world's richest person.

Private equity firm Silver Lake, known for its investments, is also involved in the deal. The new joint venture that will control TikTok is seeking patriotic investors and cybersecurity-experienced board members to oversee operations, with the deal expected to be valued in the billions.

Analysts express concerns that changes in how TikTok operates for US users could risk alienating them or diminishing the platform's value for creators and brands. Jasmine Enberg from eMarketer warned that any perceived changes to TikTok's algorithm or policies could prompt significant shifts in user behavior, potentially impacting the user experience for American audiences.