A proposed divestment deal for TikTok’s U.S. operations from its Chinese owner ByteDance is nearing completion. Under the agreement, management of the app’s algorithm will be transferred to tech giant Oracle. The deal involves transferring TikTok’s U.S. operations to an investor consortium comprising Oracle, Silver Lake, and Andreessen Horowitz.

According to a Trump administration official, the arrangement is expected to address national security concerns. ByteDance will retain less than 20% of its stake in the company. U.S. officials have previously raised alarms about the algorithm’s vulnerability to manipulation by Chinese authorities, which could influence content on the platform in subtle ways.

A spokesperson for the House Select Committee on China stated, “It wouldn’t be in compliance if the algorithm is Chinese. There can’t be any shared algorithm with ByteDance.” Oracle will receive a copy of the algorithm and oversee TikTok’s security operations, with the system “fully inspected” for irregularities. A senior White House official emphasized that the content recommendation formula will be retrained using U.S. data to ensure “appropriate behavior.”

White House press secretary Karoline Leavitt claimed U.S. users would still access global content, though it remains unclear if the retraining creates a distinct TikTok experience for domestic users. Trump is set to sign an executive order later this week, designating the deal as a qualified divestiture under the ban-or-sale law. The official also announced a 120-day extension of the law’s enforcement pause to finalize paperwork.

The fate of TikTok’s algorithm had been a central issue, as its content recommendation engine drives user engagement but raises security risks. U.S. officials feared ByteDance could manipulate the system to influence public opinion. Under the deal, the new ownership group will review and retrain the algorithm on U.S. data, with Oracle monitoring its operations continuously.