Oracle is in advanced discussions with the White House about a deal to take over TikTok’s US operations. However, concerns remain about the role of the app’s Chinese founders, according to three sources familiar with the matter.
Vice President JD Vance and national security adviser Mike Waltz are leading the negotiations on behalf of the Trump administration. Several senators have also pushed to be briefed on the talks, according to two sources. A third source described the discussions as progressing toward a potential agreement.
The negotiations come amid ongoing warnings from lawmakers and national security experts that keeping TikTok’s underlying technology under Chinese control could leave alleged security issues unresolved. Congressional Republicans have raised concerns that even with new ownership, TikTok’s Beijing-based parent company, ByteDance, would retain influence over the app’s algorithm and user data.
Oracle’s role and security concerns
If the deal moves forward, Oracle would be responsible for managing the data of American users and ensuring that the Chinese government cannot access it. However, one of the sources cautioned that such a guarantee could be difficult to enforce.
“You still have this [algorithm] controlled by the Chinese,” the person familiar with the matter told POLITICO. “That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data.”
TikTok’s data practice has been under US scrutiny for years. Yet most recently, HaystackID, an independent security inspector for TikTok US, reported in February that it found no evidence of internal or external malicious activity or any unauthorised sharing of US user data with China.
Project Texas 2.0
The potential agreement is being referred to as “Project Texas 2.0,” building on a previous deal between TikTok and Oracle. Under the original Project Texas, TikTok moved American user data to Oracle servers in Texas and restricted ByteDance employees in China from accessing it. The earlier deal also included Oracle reviewing TikTok’s source code to assess security risks. However, those measures failed to ease concerns among lawmakers and the Biden administration about the app’s ties to China.
Key lawmakers, including several Republicans, have invited Oracle to discuss the proposed deal and national security implications this week, according to sources familiar with the matter.
Political and business tensions
The renewed push to secure a TikTok deal follows an executive order signed by President Biden in January, giving ByteDance 75 days to sell its US operations or face a ban. The order came after Congress passed bipartisan legislation targeting TikTok over national security concerns.
Trump, who previously sought to ban TikTok during his first term, has softened his stance on the app. Trump’s shift followed a meeting with Republican donor Jeff Yass, who holds a large stake in ByteDance. In December, he told supporters at a rally that he had “a warm spot” for TikTok.
Trump has said that his administration is in discussions with “four different groups” about a potential TikTok deal. Oracle founder Larry Ellison, a longtime Trump supporter, has been floated as a possible buyer. Ellison has positioned himself as part of “Project Stargate,” a $500 billion AI infrastructure initiative that includes OpenAI, SoftBank, and MGX.
China’s position and regulatory challenges
Whether the deal moves forward may ultimately depend on the Chinese government. ByteDance would need approval from Chinese regulators to sell TikTok to a non-Chinese company.
China’s Commerce Ministry has signalled resistance to a forced sale, warning that any such transaction would require government approval. In March, Chinese Foreign Ministry spokesperson Shu Jueting said Beijing would “firmly oppose” any forced divestment of TikTok’s US business. Another spokesperson accused Congress of using “hegemonic moves” to seize control of the app.
China’s overall position remains unclear. While officials in Beijing have softened their language in recent months, they have not indicated whether they would approve a sale. A spokesperson for the Chinese Foreign Ministry said in January that any deal “should be independently decided by companies in accordance with market principles.”
White House deadline approaching
The Trump administration faces an April 5 deadline to secure a deal or impose a ban. Trump recently expressed optimism that an agreement could be reached before the deadline.
TikTok’s parent company briefly shut down the app in January after failing to meet an earlier deadline for a sale. The Supreme Court upheld the congressional ban shortly afterwards, putting additional pressure on ByteDance to comply with US demands.
Whether Oracle’s involvement satisfies lawmakers’ security concerns remains to be seen. If ByteDance retains any control over TikTok’s algorithm or data, lawmakers could continue to push for more aggressive action.
(Image by Pixabay)
See also: TikTok is back online. Other ByteDance apps? Not so much
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