White House reviewing TikTok proposal to lease algorithm from China
Source: NPR
April 2, 2025 6:56 PM ET
The Trump administration is considering a deal to potentially resolve TikTok's legal uncertainty that involves leasing the app's algorithm from Beijing-based owner ByteDance, according to a person directly involved in the talks who is not authorized to speak publicly. Under the plan, a new U.S. entity would be created led by software giant Oracle. ByteDance is expected to retain a minority stake.
The algorithm leasing proposal has been controversial in the White House, according to the source. There is debate among China hawks about whether the plan truly removes ByteDance from having operational control of the app. But the move could circumvent the need for China to approve the deal at a moment when the Trump administration has announced a 34% tariff on Chinese goods.
Trump imposed a sell-by date of Saturday for the hugely popular video service. Ahead of the deadline, a flurry of new bidders have shown interest, including one led by tech giant Amazon, but negotiators in the White House say the offer is not being taken seriously.
Oracle, which already provides TikTok with most of its backend technical support, would be tasked with supervising the new entity to ensure there are no backdoors for the Chinese government to access the data of millions of Americans. The person involved in the negotiations with TikTok said the safety of users' personal data, rather than the algorithm, has been the dominant focus of the talks.
Read more: https://www.npr.org/2025/04/02/nx-s1-5349592/tiktok-oracle-trump-china-deal