The White House announced Monday that a US-operated version of TikTok would feature a domestically developed model of its prized recommendation algorithm, potentially removing one of the biggest hurdles to keeping the Chinese-owned app active in the United States.
Often described as TikTok’s “secret sauce,” the algorithm has been a key sticking point in negotiations with Beijing over transferring ownership of the platform to American hands.
A law passed under President Joe Biden requires current owner ByteDance to divest TikTok’s US operations or face a nationwide ban. US officials, including Donald Trump during his first presidency, have long warned that China could exploit the app to harvest data or influence Americans through its powerful algorithm.
Under the proposed arrangement, TikTok’s US business would shift to a new joint venture run from the United States, overseen by a majority-American board. Oracle, already a partner of TikTok, would act as security guarantor, ensuring the algorithm is retrained and managed solely with US user data, separate from Chinese oversight.
The algorithm will be “fully inspected, retrained, and continuously monitored” to guarantee independence, a senior White House official said. Trump is expected to sign an executive order this week certifying the deal as compliant with US national security requirements.
The board of the US entity will reportedly include seven members, six of whom will be American. Potential investors include Rupert Murdoch and his son Lachlan, along with firms like Andreessen Horowitz and Silver Lake.
While Washington has provided details of the proposed structure, Beijing has kept quiet. Chinese state media only reiterated that business talks must follow market rules and Chinese law after a recent Trump–Xi phone call.
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