Donald Trump Considering Deal From Oracle To Run TikTok In US? What We Know

Software giant Oracle is reportedly in negotiations with the White House over a potential deal to manage TikTok's US operations. But concerns about the extent of involvement of TikTok's Chinese parent company, ByteDance, persist.

President Donald Trump has entrusted Vice President JD Vance and National Security Adviser Mike Waltz with overseeing negotiations aimed at bringing TikTok under American ownership. Talks have advanced significantly, with some White House officials suggesting they were in the final stages.

Several US senators have called for greater transparency on the ongoing discussions, according to a report in Politico.

Though the details of the negotiations remain confidential, lawmakers remain cautious about whether any new agreement would address security risks. Critics say that if ByteDance continues to control the app's core algorithm, it could still pose a potential threat, even if Oracle oversees American user data.

Some Republicans and China hawks remain sceptical, insisting any deal keeping TikTok's technological backbone under Chinese control would be an inadequate response to security threats. According to a person briefed on the talks, Oracle's role would primarily involve managing user data and preventing unauthorised access by the Chinese government - an assurance some believe may be impossible to uphold.

"If the Oracle deal moves forward, you still have this (algorithm) controlled by the Chinese. That means all you are doing is saying 'trust Oracle' to disseminate the data and guarantee there is no 'back door' to the data," the source told Politico.

Independent security firm HaystackID, which audits TikTok's US operations, however, said there was no evidence of malicious activity or data-sharing with China.

The proposed deal is called 'Project Texas 2.0.' It builds on an earlier agreement aimed to store TikTok's US data on Texas-based servers under Oracle's oversight. That earlier deal also allowed Oracle to review TikTok's source code. It failed to ease concerns in Congress and the Joe Biden administration about China's influence over the platform.

A recent report from The Information claims Oracle is emerging as the frontrunner in the bidding process, reportedly also favoured by ByteDance itself.

But no official confirmation has been made, and White House officials have yet to publicly comment on the status of the deal.

Donald Trump is facing a deadline of April 5 to finalise a new ownership structure for TikTok, following his executive order in January 2025 that extended the enforcement of Congress' ban on the app.

Trump has also publicly expressed openness to Oracle's founder, Larry Ellison, taking ownership of TikTok.

The fate of the deal ultimately hinges on Beijing's approval. The Chinese government has been resistant to any forced sale of TikTok, maintaining that any transfer of ownership would require approval under Chinese regulations.